First Titan Corp. (OTCBB:FTTN) Slides Back a Fifth
First Titan Corp. (OTCBB:FTTN) increased its risk every day of its climb, and predictably, the correction came, with two consecutive days of selling. FTTN lost more than 22% on Thursday, ending up at $1.32, dollar volumes were above $1.18. The climb of FTTN so far was considered just for its short-term earning opportunities, as the company is still far from a resounding success in the field of natural gas and oil.
Now, FTTN came in with a new PR message, stating an involvement in a re-opened oilfield. But in reality, FTTN is only beginning to negotiate a partnership for several new wells in Texas. Until those wells come online, FTTN remains a speculative bid that has started unwinding. FTTN is drilling only in Louisiana, while it holds other oil assets.
For investors’ forums, FTTN is mostly spent already, as the climb is seen as an artificial inflation, a one-off event. Only a few days back, opinions allowed the possibility that FTTN goes as far up as $2.50. Now, FTTN will see Friday’s trading, which may deepen the slide.
In fact, $2.50 is where FTTN started the year, and most of 2013 has been a recovery to the current prices. In 2011 and 2012 FTTN held much higher positions, up to $50. But the past two days are more worrying, given the record volumes which may speak of a concerted effort to pressure the stock price up as much as possible, then sell.
FTTN has benefited more from PR messages than from the promotion in January, and from the summer months onward added to its price significantly. Yet the ticker has had similar corrections before, and continued upward, despite the fact that a purportedly booming oil and gas company is only making a few thousand dollars a year.
Oil and gas companies often appear among penny stocks, and their price range is not indicative of stability. Often, the possibility of energy assets is used to boost the image of a company that has little to show.
OriginOil, Inc. (OTCMKTS:OOIL) is one of the names we’ve been tracking for a while, which shot up to great investor interest and a disproportionate price, only to slide back to about 30 cents. Now, the stock is making a recovery, with a bid to do more than a dead cat bounce. OOIL stayed for about two weeks around the 31-cent levels, and in the beginning of October stood below 25 cents.
Blue Earth, Inc. (OTCMKTS:BBLU) is another company that boasted of the possession of significant forestry assets to monetize in its carbon footprint business. But the stock stalled after a period of active PR and investors’ interest, trading around the $3 levels.
If you still believe FTTN is not finished with the general upward movement, keep in mind that the ticker is capable of significant corrections, and avoid investing unaffordably.