Martin Tsvetkov

Firemans Contractors Inc (OTC:FRCN) Receives Promotional Backup to Regain Investors' Interest

by Martin Tsvetkov October 6, 2011
FRCN_chart.gifFiremans Contractors Inc (OTC:FRCN) has been out of the market spotlight since Sep. 29. Furthermore, even the Oct. 4 news about a drastic increase in revenue could not attract investors' attention. Having run out of ideas, third parties have now organized a paid promotion to bring FRCN stock back to the market and subsequently pump it. The advertising effort was reported to cost $10 thousand.

A quick look at the charts reveals that FRCN has only recently started trading on the OTC Bulletin Board. The highest value FRCN has reached so far is $0.16 per share. Considering the press release which came up two days ago, however, the company stands a good chance of surpassing this figure, as long as its financial condition shows signs of improvement. According to the PR, FRCN had managed to score a 390% improvement of its revenues for the fiscal year ended Jun. 30, 2011. As it seems, however, this number must be a little exaggerated because the real numbers taken from the company's 10-K annual report show:

  • $781,819 in revenue generated for the fiscal year ended Jun. 30, 2011;
  • $200,160 in revenue generated from inception (Aug. 21, 2009) to Jun. 30, 2010.

FRCN_logo.jpgWhile FRCN has really made a giant leap in terms of revenue, the latter amounts to a 290% improvement over the previous fiscal period (instead of 390%). Nevertheless, the development has been following a positive course. Provided that FRCN continues to multiply its revenues in the forthcoming quarters, it will soon be able to liquidate its current working capital gap of some $300 thousand. Considering that the company specializes in providing superior parking lot maintenance services to both commercial and government clients, the prospect of a bright future does not seem so far-fetched.

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