and trading over 1 million shares on the market.Apparently, the only explanation on the climb appears to be yesterday’s promotion of FEWP, and the latest news from the company. According to stockpromoters.com, Far East hasn’t paid any compensation to the promoter, though the promotion immediately started the high trade.
Most probably, the last news about Far East has also supported the stock. A couple of days ago, the company announced it has entered into a binding Letter of Intent (LOI) with Tianlanhengfeng Electrical Power Corporation “in order to jointly develop and operate a wind farm project” located in Wulatehou Qi, China. The project was planned for a total capacity of 300MW with 6 phases at 50MW each. Tianlanhengfeng has obtained all the approvals and permits from the local government and has commenced construction. According to the announcement, the two companies have planned to establish a Joint Venture for developing the first 50MW collectively, though the negotiations are not completed yet.[BANNER]
Far East reported more plans for its business, however, they are yet to be implemented. Looks like the news accompanied by the promotion of FEWP encouraged traders and supported the stock.
Far East Wind Power Corp. aims to generate clean and profitable energy in one of the world’s fastest growing energy sectors through access to a portfolio of utility-class wind power development projects. As already reported on hotstocked.com, FEWP had another price peak about a month ago due to a positive research report, however, the company’s financial results were discouraging.
The latest 10-Q report of the company was filed with a delay about a week ago. According to it, the financials of Far East have deteriorated even more. The company’s liabilities have significantly increased, as well as the stockholders’ deficiency and the net loss. Still being in the development stage, Far East has not generated any revenues since inception, while its expenses have increased.
As of September 30, the company had negative working capital and incurred substantial losses due to operations related mainly to its wind projects. In that case, unless Far East finds a way to improve its financial condition, there is “a substantial doubt regarding its ability to continue as a going concern”.
