On Friday, the share price of Freedom Energy Holdings, Inc. (PINK:FDMF) leaped up to cross the 50-day moving average. Today’s trading will be impacted by a new promotional e-mail on the stock and by news coming out after the close of the previous session. 
FDMF closed at $0.0041 on Friday, which is a 20.59% increase from the previous close. The sub-penny stock stock traded only a little over 844,000 shares, but the trading volume could jump dramatically in the coming session. Yesterday afternoon, a promo e-mail came in, proclaiming “gigantic breakout potential” for FDMF.
The promoter expects to get up to $12,000 from a non-affiliate third party for a two-day promoting campaign. Freedom Energy Holdings issued also a press release on Friday afternoon that should affect the stock today. According to the statement, FDMF has selected an attorney to support the company’s patent application for its asphalt recycling technology SR-139.
Even if the news and the promotions make FDMF share price jump up, their effect is usually so short-lived that it can hardly be exploited by regular traders. Long-term, the company’s financials do not make it look like a reliable investment.
Freedom Energy Holdings stock has extreme dilution risks as the number of the company’s outstanding shares grew from 247 million at the end of December 2010 to 587 million at end of September 2011. At the same time, the public float rose for the same period of time from 9.9 million to 105 million. FDMF authorized shares are 10 Billion, while the company had only $4,800 in cash at the end of last September against over $1.9 million in current liabilities.
FDMF claims to be operating in the oil and gas sector, though apparently not in the most profitable part of that market. For the three months ending September 2010 there were only $51,000 in revenue, coming from consulting services, and the net loss for the period amounted $80,000.
