Martin Tsvetkov

Fireman's Contractors Inc (OTC:FRCN): Promotional Round #2

by Martin Tsvetkov November 15, 2011
0FRCN_chart.gifForty days after sending the first promotional email in support of Fireman's Contractors Inc (OTC:FRCN), the promoter, who has received $10 thousand for a three-month advertising campaign, flooded investors' emails with the second portion of the program.

The new email arrived right in the middle of yesterday's trading session. Unlike the previous one, which covered four stocks, this one is entirely devoted to FRCN. In fact, what it contains is a comprehensive interview with the founders of the company who also happen to be a family couple. Obviously, no third parties appear to be involved in the advertising campaign. As a result, FRCN stock went up 10%, closing yesterday's session at $0.11 on a volume of 142 thousand.

Fireman's Contractors Inc specializes in offering parking lot and pavement maintenance services not only to commercial, but also to government-related customers. Yesterday, the company announced it would present its business services at an industry-related regional expo organized by the Apartment Association of Tarrant County (AATC). Scheduled to take place today, the event is expected to draw more than 100 vendors.

Although CEO Renee Gilmore describes the company's business as 'recession resistant', FRCN's financial state is still not stable enough to guarantee any long-term development prospects. As of Jun. 30, 2011, the company has:

  • $3K in cash;
  • working capital deficit in excess of $600 thousand;
  • $237K as opposed to $113K for the previous quarter;
  • quarterly net loss of $200 thousand vs. $116 thousand incurred in Q2 of 2011.

5FRCN_logo.jpgWhile FRCN's revenue increase is by all means a favourable development for both the company and its stockholders, it is still not big enough to either minimize the working capital gap, or turn the net loss into income. Nevertheless, FRCN managers have every chance of going in the black as long as they offer high-quality services.

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