Petar Ilievski

The Story of First Corp (OTC:FSTC) and Its Rich Promoters Continues at Full Speed

by Petar Ilievski April 6, 2011
FSTC-logo.gifIf you think that it was over for First Corp (OTC:FSTC, FSTC message board) in March, you are sadly mistaken. The rally is far from over as the second round commences this week. The saga with the acquisition continues, while promoters get richer. All in all, the plot thickens, but at least the stock performance is better than last year. FSTC-06.04.11.jpg

It is not unusual for penny stocks to be promoted, neither it is such a precedent for a third party to pay promoters $100k for a promotion. Yet, there are cases where drawing parallels between financial figures can leave investors speechless, although the situation on the stock market is not bad at all. 

Now, the promotional wave, paid with more than $100k and dating back to the beginning of March, pushed the stock price from $0.7 to above $0.9 in a matter of days. Unfortunately, as usual, while promotional newsletters continued bombarding inboxes, they could maintain levels of $0.9 per share. In terms, after the last one from March 14th, the trading frenzy was all over and the usual low trading activity came into place again. Nevertheless, this April the second wave is coming. It started with another $100k yesterday, so it is possible that a new hype would form around First Corp as the price already started to climb. 

Naturally, the acquisition of Acquma is also mentioned as one to happen soon. What the promoter fails to mention is that investors have been reading for quite some time now about the "soon-happening deal". What is also important - while First Corp was incorporated in 1995, it has focused its activities to organization and capital formation up-to-date. Which means 15 long years of no revenues.

Furthermore, a quick glance at the last 10-Q statement with an end date Dec. 31st would reveal that the organization and capital formation has led to the following numbers at the end of last year:
  • Total Current Assets (Cash only) of $27k;
  • Total Current Liabilities of $133k;
Not really apocalyptic figures, but one should keep in mind the following - First Corp wants to acquire another company. And this is not the only interesting fact here. Last December, the company appointed Mr. Andrew Clarke as its new CEO. According to the agreement, Mr. Clarke would receive a little more than $660 per month, for a total of $8000 per year. While such salary can certainly fit in the balance sheet of the company, some people might find it better fitting for a seasonal worker.

These, as well as many other factors, form a pretty peculiar picture for First Corp at the present moment. They also paint one of uncertainty, however, and it is hard to predict what the outcome would be for the company and for its present and future shareholders.

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