Freedom Energy Holdings, Inc. (PINK:FDMF) has got yet another paid promotion accompanied by a new optimistic press release yesterday. Although the company still has no stable fundamentals to show, its stock price has nearly doubled within three consecutive trading sessions. 
Yesterday, FDMF closed the market with a 15.79% increase at $0.0044, but it jumped to $0.0054 during the day. The trading volume was the highest for the past six months with more than 85.3 million traded shares for the day. Yesterday’s close was above the 50-day moving average and technical indicators suggest further increase for FDMF share price in the new session.
Another thing is the new promotion that FDMF received after the close yesterday. The disclaimer of the e-mail that came into our database says the promoter received $7,500 as compensation for advertising and promotion. In addition to that, the company announced in a press release yesterday that it had retained Michael W. Goltry who holds a chemistry degree from the College of Idaho and a law degree from Brigham Young University to assist for the patent application for FDMF’s proprietary asphalt recycling technology.
Past experience shows, however, that any positive effects of news and promotions are rather short-lived, especially for companies like this one. FDMF current market cap is $2.85 million, and its financials do not suggest the stock is worth more than that. As of end-September 2011 the company reports $2.7 million of total assets, of which $1 million constitute intangible assets and only $4,854 are held in cash. FDMF has no profitable operations either.
