Rapid Fire Marketing, Inc. (PINK:RFMK) Cools Down
Last week Rapid Fire Marketing (PINK:RFMK) ran a little too hot for its own good. After share price very nearly doubled in just two sessions, the stock took two successful tumbles and closed the week at $0.0028 per share.
Last week’s climb was, luckily, not backed up by stock promotions. There have also been no optimistic press releases on part of RFMK and no hype generated through PR, yet the company shifted about a third of its total shares outstanding in just two days, climbing up. RFMK produces a line of vaporizing electronic cigarette devices that are geared towards hemp oils. The marijuana sector was particularly hot over the last couple of weeks, which could to an extent explain the sudden interest in RFMK as another company that was propped by the general hype surrounding the industry.
The company’s filings do little to induce investor excitement as well. The report related to the most current period is a Q3 of 2012 quarterly and it contains some underwhelming figures:
- $24 thousand in cash
- $26 thousand in revenue for Jan-Sep 2012
- $431 thousand in net loss for Jan-Sep 2012
In the years 2010 and 2011 RFMK incurred net loss of respectively $4.1 and $1.4 million. Failing to turn profit, the company doesn’t hesitate to finance its activities through the issuing of stock. In the quarter covered by the report alone, RFMK issued over 439 million common shares for proceeds. Additionally, 150 shares of Series A preferred stock were issued at $10,000 per share but out of the total $1.5 million receivable, the report states only $50 thousand was received. The current outstanding stock of RFMK sits at over 1.5 billion as of mid-December 2012, according to the company’s OTCMarkets page.
The company’s so-called ‘principal executive offices’ also seem to be located in a quaint residential house. This may be in discrepancy with people’s notion of what a corporate office looks like. Even at RFMK‘s last closing price of $.0028 per share, the company’s valuation sits at over $4 million.
We warned investors where RFMK may be heading while it was still climbing last week. Where it is heading next remains to be seen but as usual traders should be careful with sub-penny stocks and do their own research before investing in them or any other stock for that matter.
