Nelly Shishkova

Fireman's Contractors Inc (OTC:FRCN) Gets Pumped Up by News and Promotions

by Nelly Shishkova April 11, 2012
Fireman's Contractors Inc (OTC:FRCN) has been moving up over the past couple of days. Yesterday, the stock added another FRCN_chart.png1.47% to its price, and its traded volume reached 1.4 million shares.

Today, FRCN looks even more determined to continue the climb, supported by hot news and promotions.

Yesterday, the company reported that the U.S. Chamber of Commerce would recognize Fireman's at the 2012 America's Small Business Summit as one of the Free Enterprise Honorees announced earlier this year.

Along with the positive news, FRCN got promoted for a compensation of $3,500, which may pump up the stock price even more than the company's announcement. Yet, the result should be seen in a while.

Fireman's Contractors, Inc., a development stage full service painting company, focuses on residential, commercial, and industrial parking lot striping, and parking lot maintenance services. During the last few months, the company has been constantly releasing positive news on its projects, which often stimulated FRCN stock price. Nevertheless, the company's latest 10-Q report was pretty discouraging.

As of Dec. 31, 2011 total liabilities of FRCN jumped up, while its cash substantially decreased. At the same time, the net loss got more than three times higher as compared to the previous year, and the accumulated deficit totaled over $1 million.

FRCN_logo.jpgThe company's negative working capital, accumulated deficit and negative operating cash flows raise substantial doubt about its ability to continue as a going concern. Additionally, the management claim they expect their general and administrative expenses to increase due to the additional operational and reporting costs associated with being a public company.

The primary sources of funding are expected to be cash generated from operations and raising additional funds from the private sources and/or debt financing. However, the team of FRCN can provide no assurances that they will be able to generate sufficient cash flow from operations and/or obtain additional capital or financing on terms satisfactory to them, if at all.

Comments 0

Type the characters that you see in the box (5 characters).