The stock of Four Rivers BioEnergy Inc. (OTCBB: FRBE, FRBE message board) has been declining nearly since the day the company went public. Once worth over 20 bucks, the present penny stock only delivers some random gains on news.
Wednesday has been a great day for those trying to get rid of Four Rivers stock, as buyers found confidence in the recent appointment of Stephen Padgett as the company's new CEO. This appointment has actually only been a switch of who is in command between two members of the same team. Gary Hudson, the previous CEO, will continue to serve as a director and senior VP of operations.
So in general it looks like the new CEO is not going to bring about a revolution with regard to the company's strategy. Rather, they believe that the man is best suited for following the current plans.
Despite all the praises and motivational speeches presented during the appointment, this doesn't solve 4Rivers inability to generate value for investors. A 45% intraday price surge is likely to be the only thing that turned out better for the company at this stage.
Even though they had some revenues over the most recent quarter, the loss wasn't smaller because of that. 4River continues to burn cash at a fast pace, and there will be hardly any left if the coming quarter's losses exceed $3 million. Also, increasing revenue isn't possible without capital. So until there's a financing of some sort there isn't going to be much of a growth happening.
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