Ironically, most people do not bother reading the most important part of the stock promotion. They read about the dream revenues, strong growth potential and undervalued stock, which is what the promoter wants them to read. Yet, it is important to pay attention to the tiny paragraph at the end, which in this particular case includes no third party, but only Brekford Corporation(OTC:BFDI) itself. 
Unlike most promotions, the one from yesterday about Brekford is not about incredible results in the near future. The purpose of this company is obviously to raise awareness by introducing itself in detail, eventually sparkling activity on the stock market. This is why the amount paid is just $6 thousand, despite the strong financial position of Brekford.
Over the last six months, the company’s stock has been revolving around $0.1, but the daily volumes of traded shares would rarely exceed 30 thousand, meaning the money spent on Brekford shares would rarely be more than $3k. The present situation, however, might change soon, depending on the financial statements to come for the next few quarters. [BANNER]
On a related subject, the last 10-Q with an end date Dec. 31st came out 2 weeks ago, so there is much information to look at in order to assess the return on your investment in Brekford. This company is, indeed, in a better financial position than most penny stock enterprises. Not only are there actual sales taking place, but the current assets surpass liabilities by far. On the other hand, there is a noticeable decrease of revenues for last year compared to 2009.
The question at hand is – what is the risk and return ratio for the company? The answer would include, among others, the following components:
- stable financial position with assets surpassing liabilities;
- net income of only $70k;
- contracts in place with good potential for increasing revenues in the next quarters;
- little interest in this stock, thus no major jumps and downs in price;
Now, while the latest promotion in question might not exactly create trading frenzy today, it is certainly a good thing for current shareholders. The more people get acquainted with the stock, the better the chance is that major movements will take place on the market. In order for a trend of sustainable growth to form, however, there is one element that is still missing – it is the increase in net income. If this happens, current shareholders would be quite happy with their investment. If the next quarterly financial statements indicate no such increase, then it is likely that even speculative traders would transfer their attention to other more liquid opportunities.
