Another Paid Pump for Spectral Capital Corp (OTCMKTS:FCCN)

The company that we now know as Spectral Capital Corp (OTCMKTS:FCCN) started off fourteen years ago with the idea of making an impact on the entertainment industry. That didn’t work. Then, they changed the name and said that they want to develop an internet search engine. They failed. One more name change followed and in 2010, they tried their hands in the mineral exploration business. That didn’t work out either and in 2012 they decided that they will try to make some money by acquiring small technology companies that develop a variety of online platforms. So, how is FCCN‘s latest business plan going?

That depends on who you’re asking. The pumpers, for example, will tell you that the company is “putting its foot down” and that it’s a “seriously undervalued opportunity”. After the closing bell on Tuesday, Stock Brain and Damn Good Penny Picks sent out six emails and tried to draw some attention to FCCN. Of course, they didn’t do it for free. The cumulative compensation amounts to $35 thousand and it would appear that the artificial hype was enough to push the price up by an impressive 39%. FCCN finished yesterday’s session at $0.307 on a dollar volume of $305 thousand.

The pumpers are not the only ones interested. About a month ago, FCCN announced that it has officially launched Monitr – an analysis platform for investors which can track what the news sentiment is for any given stock. Apparently, some websites liked the idea and they even conducted interviews with Dennis Lutsky – the person in charge of the Monitr subsidiary. Yesterday, he said that they are working on expanding the market news platform which should make it even more appealing.

All in all, the news doesn’t look too bad, but unfortunately, the same can not be said about the latest 10-Q. Here’s what FCCN recorded during the third quarter of 2014:

  • cash: $300 thousand
  • current assets: $624 thousand
  • current liabilities: $416 thousand
  • NO revenue since inception
  • quarterly net loss: $490 thousand

Sure, there is a working capital surplus of around $208 thousand and FCCN‘s management team say that the cash reserves should be sufficient to get them through the next twelve months, but unless they manage to generate some meaningful revenues from the mobile and web-based platforms, they will find themselves in a bit of a situation really soon.

This means that the shareholders can do little more than keep their fingers crossed and hope that everything will be alright in the future. While they’re doing that, however, they should bear in mind one more thing. Let’s open the 10-K covering the period ended December 31, 2010 and see what it is.

On Page 3 of the report, you’ll see that more than four years ago, FCCN issued a total of 100 million shares of common stock at $0.001 a piece. Half of them were sold for cash and the rest were printed as a conversion of debt.

The profit opportunity for the people who got the stock is absolutely massive and the only question right now is: “Do they still hold the $0.001 shares?”.

We can’t answer that, unfortunately. We do know, however, that yesterday’s trading volume of just over 1 million shares is an absolute record for FCCN.

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