23.57% on the market and its volume rose over 990 thousand shares traded.Apparently, something has provoked the current up move and Far East started the high trade.
The company has not published any news since Sept 21, except the release that come up a couple of days ago. According to the announcement, NBT Research LLC has issued a research report on Far East “with a Speculative Strong Buy rating”. In connection with the report, Mr. James Crane, CFO of FEWP, said that it provided “a well-considered and compelling overview of the state of the industry in China, and Far East’s extraordinary opportunities in the months and years ahead”.[BANNER]
Though, traders seem discouraged by the stock and the fall has begun.
Far East Wind Power Corp. is building a portfolio of Wind Development projects located across China. The company filed its annual report about mid-October, pointing that as a development stage FEWP has no revenues so far. However, the net loss of Far East has been increasing, exceeding $533 thousand by end-June.
According to the financial report, FEWP has also incurred much higher expenses and significant professional fees, while its cash balance totals $0.00. As the management expects significant capital expenditures during the next 12 months, they think the working capital will not be sufficient till end-June 2011. Thus, the team claims they will need to obtain additional capital and that “In order to obtain capital, we may need to sell additional shares of our common stock or borrow funds from private lenders”.
However, the 10-Q report of FEWP states that even if the company raises some funds, unexpected costs and expenses may be incurred and the stockholders may be threatened by additional dilution.
