The stock of F-3 TECHNOLOGIES, INC. (PINK:FTCH) delivered a controversial performance on during the latest trading session which took place on yesterday. On the one hand, its price went through a grand slump. It lost almost 50% of its value, reaching its last week's levels and closing at $0.012. The traded volume, on the other hand, soared remarkably and jumped beyond the 17.7 million mark. Volumewise, the company's performance is second to none in its entire history.
The driving force behind the sudden rise in volume has its roots in the massive promotional wave advertising FTCH shares throughout Jan. 20. So far, the rough estimate of the promotion cost amounts to $30 thousand. In addition, a fair number of unpaid trade alerts flooded investor emails. Meanwhile, an official company announcement addressed the general public. It informed of the affiliation of FTCH with a digital store. This move will, the management believes, introduce the company's FargoTube(TM) social-networking platform to a practically unlimited number of independent musicians, providing the latter with the opportunity to distribute their own musical works to online retailers.
Headquartered in Alpharetta, Georgia, F-3 Technologies, Inc., defines itself as a 'software-as-a-service' applications provider. The company is at its development stage and claims to be offering a number of Internet solutions to both small and middle-sized firms within the United States.
Though the company has not implemented the practice of filing financial reports with the SEC, it published its 2010-Q3-report last November. At first sight, it indicates a working capital deficit of $0.5 million. What is more, almost 94% of the company's current assets, that is approx. $62K, only exist as notes receivable. The quarter ended Sept. 30, 2010 has brought FTCH an income loss of $315K, or a fivefold increase in comparison with Q3 of 2009. The same ration refers to the first nine months of 2010 and 2009, respectively. The former has already cracked the 640K mark, while the latter only reached $127 thousand.
Investors should not be mathematical genii to asses the fragile current financial state of the company. The FargoTube project seems a theoretically viable one. The question is: will it succeed in practice, too?