Flexpoint Sensor Systems (OTC:FLXT) is running up again. The up move started on Monday and it still continues, fueled up by
positive news and promotions.
The records show that the stock started climbing up due to a recent announcement by Flexpoint. According to it, the company was experiencing a significant uptick in interest, anticipating a substantial growth this year. In this way, Mr. Clark Mower, President of FLXT, stated his high expectations for the company’s business and provoked traders’ attention. However, at this point all of them remain only optimistic projections for the future.
Yet, Flexpoint has re-ensured the current up move by promotions. Yesterday, the stock was promoted by Stock Brain, who pointed out the revenue expectations of the company. The campaign cost $10.000 to Chesapeake Group Inc. and apparently it was meant to pump up FLXT stock price additionally. Anyway, the result will be seen shortly.
Flexpoint Sensor Systems, Inc. is a development-stage company engaged in designing, engineering and manufacturing bend sensor technology and equipment. Historical data shows that it was not the company’s first gain on promotions. In fact, in end-April FLXT used the same strategy to jump up and it was successful. Most important, at that time the company held the campaign by itself, convinced to hit the gain. Though, the up move was broken just for a day.
The main problem for Flexpoint, however, remain its financials. As already reported on hotstocked.com, the company has registered more assets than liabilities in its balance, though the 10-K contains huge amount of risk factors related to the existence of FLXT.[BANNER]
The management states that Flexpoint has had a history of losses and may never become profitable. However, the worst thing in the report is that the company is unable to fund its day-to-day operations and the team doesn’t expect that the total revenue in 2011 will be sufficient to support the operations. Moreover, it would be much harder to raise capital with a constantly increasing deficit and only 4 full time employees on board.
In this case, FLXT will have to rely on further debt financing and further loans from related parties to continue operation. However, none of these can be guaranteed.
