Formcap, Corp. (OTCMKTS:FRMC) Uses PR to Push Itself Over the Dollar
Formcap, Corp. (OTCMKTS:FRMC) is moving into more and more dizzying heights, easily gaining over the dollar levels- and of course, causing jitters at the same time. On Tuesday, FRMC grew by more than 16% to $1.05 on buying volumes of above $491,000. 
And FRMC keeps trying to encourage investors, now with a new PR on drilling in Kansas- but drilling won’t start until the new year. Until then, FRMC has all the chances to follow the scenarios of heavily promoted tickers, and crash, especially at the current high price. FRMC has not seen new promotional emails since November 25th, and for now relies on PR to keep up the pace- which looks less sustainable with each climbing day. Still, FRMC easily vaulted the dollar levels, jumping up from 90 cents. 
As for the drilling in Kansas, it is just a preliminary due diligence on rented acreage for drilling. So FRMC has all the options to just give up the project- just like it did with other prospective plots, due to lack of sufficient funds. With finances like that, FRMC is little more than empty promises:
- cash: $35
- current assets: $11 thousand
- current liabilities: $456 thousand
- no revenue
- quarterly net loss: $959
Nothing of the above justifies the bloated market cap, now above $92 million. And on top of all, FRMC has a further 200 million of authorized shares, which could bring easy dilution and make the balance sheet look a little better in comparison. Thus, FRMC may keep up the charade for a while. The most current application for drilling acres would cost the company a total of $480,000 in land rent expenses.
Investors’ forums seem happy about the rise, at least while it lasts. This was a case similar to First Titan Corp. (OTCBB:FTTN), which made a steep climb before moving back to a much lower range. Still, both FTTN and FRMC have the potential of quickly doubling investments. FTTN lost nearly two-thirds of its value, and though it had some good days, it is permanently away from the promotion- built peak levels, and on Tuesday accelerated its fall.
In an even worse scenario, Nevada Gold Corp. (OTCBB:NVGC) is still suspended for overly-aggressive promotion.
If you still believe FRMC has juice, and may eventually improve its balance and achieve production, keep in mind that the dollar range is highly unusual for this stock, and may be a one-off event. Plan your investment accordingly, to avoid being burned.
