Yesterday, FrogAds, Inc. (OTC:FROG
, FROG message board
) downtrend led the stock price to a new six-month low on heavy trading volume. That has been probably a late result of the numerous promotions that the stock has been subject to over the last months, but yet there is another brand new promotional e-mail for today's market session.
FROG fell down to $0.1651 during the last trading session and then closed the market with a 4.76% decrease in the share price at $0.20. Trading volume exceeded 1.3 million traded shares, which is higher than the daily average for the past three months.
As mentioned, a brand new one-day promotional campaign will probably impact the trading of FROG shares today. Last night, the new e-mail came into our newsletters database. It has been ordered by a third party and the promoter was compensated $6,500 for the service. Further effect on the market could exert a new press release from FrogAds.
It claims the company has realized substantial progress in achieving its goal of making its website FrogAds.com one of the world's most visited websites by improving its Alexa rank and increasing its daily traffic.
Promotions and news alone is not enough, however, and FROG chart shows well the general trend. The company is in a poor financial condition having around $50,000 in current assets as of end-December last year and over $95,000 in current liabilities.
FROG has convertible notes and notes payable outstanding, which exposes shareholders to even larger dilution risks. A market cap of $18 million looks unjustified for a company like FrogAds, and regardless of how much value its stock has lost so far it is likely to keep moving in the same direction unless some fundamental progress is reported.