American Fiber Green Products, Inc. (PINK:AFBG) is a company with plans and an expensive pump, but not much more than that.
A promoter has been paid $100 thousand to tout AFBG for today. A lot of the pump mail concentrates on the idea that AFBG has a stable chart pattern.[BANNER]
Yesterday, AFBG dropped 32.69% to $0.35 on about 32 thousand shares. The promoter suggests it could bounce back to $0.70 simply because it has done so in the past. This on its own is a very flawed idea; even more so when you take into account how illiquid AFBG is.
A sudden volume increase can easily break any pattern. Which could be good if AFBG was some undiscovered monster, but this doesn’t seem to be the case.
The company’s latest financial report shows it was over its head in debt, generating losses and in need of additional financing to even start operations. Another point the pump email puts across is that the share structure appears to be stable, but in its report AFBG says it will have to rely on equity financing.
In conclusion, it would seem the only thing AFBG has going for it right now is a decently expensive promotion. This could be enough for a short-term hype gain, but on the long run AFBG doesn’t seem to be offering anything other than plans which would cost money the company simply doesn’t have.
