Falken Industries (PINK:FLKI) clearly demonstrated the combined power of acquisition news and stock promotions as the company’s share price jumped over 75% in just one day.The stock price is catching up with the proposed $1.50 per share acquisition price from Norex International. The offer was called “unsolicited” by the management of Falken, but in a follow-up press release the company said they are already considering the option.
The generally unattractive stock got even more of the traders’ attention through one day advertising campaigns, run on five different websites that undertake promotional jobs. The company running all the websites got paid $10 thousand for the advertising.[BANNER]
The possibility of further appreciation of the stock price is very questionable. Even though the proposed price is ten times the current PPS, the general nature of a LOI suggests the actual deal could never be reached.
Before the acquisition proposal, FLKI shares barely traded at all after hitting the seemingly satisfactory price level just below $0.10. In their unaudited financial reports, which FLKI files only with the OTCMarkets.com, the business appears to be in quite a good financial position. However, if the numbers shown on their balance sheets and income statements are true, it naturally raises the question of why the company never hired an auditor and filed with the SEC?
