After being on the zero price change this week, yesterday Fresh Harvest Products Inc (PINK:FRHV) hit a fabulous gain. Just for 
the day, the stock soared 60% and managed to trade over 35 million shares on the market.
The reason for the gain seems to be only one – promotions. Yesterday, FRHV was promoted by PennyStockAce.com, who pointed out that the stock saw the highest trading volume of the year and the momentum was strong. Though, neither the compensations, nor the paying parties for the campaign were revealed. In any case, the alerts certainly provoked attention and FRHV hit the high trade.
Apart from the promotions, no recent news on Fresh Harvest Products has been released. A week ago, the company filed an 8-K form with the SEC, regarding a Settlement Agreement for issuing additional shares of the company’s common stock. The new agreement was related to the Asset Purchase Agreement form March 2, 2010. On the day this news was reported, FRHV stock price jumped up high, though on the next day the climb was broken.
Fresh Harvest Products, Inc. is engaged in the development, sales and marketing of organic and natural food products. Historical data shows that yesterday’s campaign is not the first one for the company. Actually, a month ago FRHV was flying up on promotions again, threatening shareholders with dilution. Now the situation seems to be quite similar and everyone is curious how long the current up move will resist.[BANNER]
In the meantime, the financial condition of Fresh Harvest looks disastrous. As of January 31, this year the company’s liabilities were 30 times higher than its total assets, and the accumulated deficit has reached almost $7 million.
Considering the huge long-term debt and losses, the management thinks that additional capital will be required to fund operations through the fiscal year ended October 31, 2011 and beyond. However, there can be no assurance that FRHV will be successful in obtaining financing at the level needed and its operations are subject to a number of risks. All these factors make the company’s continuation questionable.
