Petar Ilievski

Hype Time for First Corp (OTC:FSTC) Again

by Petar Ilievski September 7, 2011
1FSTC-logo.gifGet the news out, get the promoters to act, and then the week for First Corp (OTC:FSTC, FSTC message board) could start. This is how it usually works, this is how it did work for FSTC this Tuesday. It has been some time since such vivid trading activity for this stock has taken place. The question is - would the hype last longer than a day? FSTC-07.09.11.png

Well, it depends. On one hand, there is the positive news that came out. On the other - the promotions. So, what could have been the primary cause for 106k shares exchanging hands, forming a 21% increase in the price, the session closing above $0.60 per share. Is it the audit that continues for the Gecko SMS application, or is it the newsletter paid with $50k by a third party? If the second served as a primary catalyst, it is highly uncertain that another day of vivid trading activity would come to pass.

Actually, it is not promotions or press releases that should be of primary interest. It is the SEC filings of the company which tend to be much more objective. The last one to be filed is the 10-Q for the second quarter of 2011. A very good source of information which includes the following, among other figures:

  • $0 cash at hand;
  • $100k in total current assets (cash held in escrow);
  • $209k in total current liabilities;
  • $538k in accumulated deficit;
  • $221k in net loss;
  • $0 in revenue;

Not exactly optimistic, not exactly the same as reading company announcements or promotional newsletters. No assets, besides some cash in escrow - this was back in the end of June. Given the above numbers, it is uncertain what the rest of the week would offer. One thing is certain - this stock is far more appealing to short-term speculative investors in its present state. When and if this could change is yet to see.

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