A massive two-day advertising campaign commenced last Thursday in favor of Fero Industries Inc (PINK:FROI). Evaluated at $45 thousand, it was meant to give FROI stock a boost both in price and turnover. Volume-wise, it definitely set a seven-month record with 10.9 million shares changing hands. However, FROI stock failed to score positive price movement due to the huge selling pressure, which eventually brought FROI stock down 6.5% to $0.0374.The investor awareness program came hard on the heels of a new corporate update issued by FROI on the very last day of March. According to the release, the company had now managed to carry out a third consecutive shipment of its Sucaron to Mexico for the last 90 days. The company’s managers now claim that the drug has been put on sale at more than 900 retail shops throughout the country. [BANNER]
Only two weeks ago, Sucaron was reported to have reached about 500 points of sale. How FROI achieved to almost double the width of its distribution channel in less than 14 days, remains open to interpretation.
The company is a diligent SEC filer. Last month, it submitted its quarterly report covering Q4 of 2010. With zero cash, a working capital deficit of $360K, as well as a net loss in excess of $50 thousand, FROI has little capacity to expand its operations. Its policy may be fairly transparent, yet it only reveals 149 million shares of outstanding stock. Neither float, nor authorized stock figures have been disclosed.
Provided that FROI manages to attract a wider range of investors, it might succeed in raising enough capital to continue operating as a going concern. After all, it does have a final product on the market which, at first sight, appears to be commercially viable. As soon as Q1 of 2011 has come to light, stockholders will know whether they have made successful investments or not.
