Rapid Fire Marketing, Inc. (OTCMKTS:RFMK) Trundles Down
The new year has so far been kind to Rapid Fire Marketing, Inc. (OTCMKTS:RFMK). The ticker increased in price, climbing from $0.0005 to over $0.006. Yesterday RFMK went through a spasm and dropped over 14%.
The question is what helped the company increase its price twelve times in just five weeks of trading. The answer, sadly, is largely unwarranted hype. The company’s last official press release came out in early December and that contained mostly forward looking optimism. The company’s dry vaporizer which was which was ‘expected’ to be up for sale in August 2013 and has been in the works since October 2012 is still not ready to hit the market.
The largely inconsequential update did nothing to revive RFMK‘s share price and the ticker kept wobbling around the $0.0005 level where it spent the last few months. The price explosion that took place in January can be explained with the overall sector hype that lifted every single stock that had anything to do with marijuana.
RFMK‘s books are hardly a source of excitement for traders. The company’s most current report is the one covering Q3 of 2013 and it contains the following:
- $1,812 in cash
- $16 thousand in revenue for Jan-Sep 2013
- $717 thousand in net loss for Jan-Sep 2013
To top all that off, RFMK managed to issue over 750,000,000 shares in the first three quarters of 2013. Admittedly, the major portion of that was issued to extinguish debt but the conversion price was set at $0.001- a fivefold discount from RFMK‘s current price.
RFMK went through a price surge similar to the current one back in early 2013, when, once again, the entire pot stock sector was on fire. The chart to the right shows how well that panned out in the long run. Investors are encouraged to look through our previous coverage of the ticker and exercise caution before making any rash or impulsive decisions just because a given stock is cheap and has the word ‘marijuana’ in its PR.
