Yesterday FOFU had one of its most active tradings session with a share volume of about 100,000 shares. The closing price was $0.17, or 13.33% higher than on Wednesday and during the day FOFU surged as far as 20 cent, where unfortunately met hard resistance for a third time this year. It will be interesting to follow if the alerts from yesterday evening will manage to take the stock out of its trading channel.
Despite of the low dollar volumes that FOFU trades, that could still appear to be a difficult task, especially for a promoter that is not among the most prominent ones, nor among the ones famous for sending share prices and traded volumes of their promoted stocks to the skies. On top of all, Xtremepicks.com did even get paid for including FOFU in the alert. Respectively, its efforts to pump the stock price up are limited to relating the company with some revenues from re-selling oil and gas to the turmoil in the middle east, along with pointing out some technical parameters.
Force Fuels Inc. business is of a comparably small scale as well. Since its inception in 2002, the company had a total of $40,300 in revenues ($32,849 of which in the quarter ended October 2010) and ended two of the last four quarters with zero cash in the bank. On that lack of liquid assets and current liabilities go far beyond $2 million, the signed in January this year $1 million Investment Agreement was The Real Deal. But, as seen on the chart, not in the eyes of the common investor.
According to the terms of the agreement, the company can make draw downs at its discretion and sell shares of its common stock to the investor for a period of two years and the shares should be sold at a 90% discount to the the lowest closing Best Bid price.
