Fortitude Group Inc (OTCMKTS:FRTD) Blasts Off Once Again

26FRTD.pngOn March 17, Fortitude Group Inc (OTCMKTS:FRTD) announced that they expect to realize more than $33 million in annual revenues from the transaction fees related to their revolutionary payment system that is, apparently, catered to the marijuana industry.

That’s a bold claim made by a small cap enterprise whose stock was traded deep in the double zero levels not that long ago. It is also quite audacious considering the fact that the company website is still not operational.

And, in light of the financials found in the latest report, the colossal revenue figure seems to be bordering on the impossible. Here’s what FRTD had as of September 30, 2013:

  • current assets: $2 thousand
  • current liabilities: $1.2 million
  • no revenue
  • quarterly net loss: $75 thousand

Despite all this, the market doesn’t seem all that concerned. In fact, FRTD registered an impressive jump yesterday and it did it without the help of any press releases or promotional emails.

More than 127 million shares changed hands in just six and a half hours of trading resulting in a dollar volume of around $3.6 million. The ticker opened the day at $0.019 (12% above Monday’s close) and embarked on an incredibly consistent run. A few minutes before the closing bell, it hit its 52-week high of $0.042 and, after a tiny correction, closed the session at $0.041.

144% in daily gains are not that uncommon in the world of penny stocks, but we rarely get to see similar runs being done without the help of press releases or pumpers. Investors don’t seem too perturbed though. In fact, there’s quite a lot of buzz around the message boards and many people are expecting the strong performance to continue. But will that happen?

If FRTD actually manage to register more than $30 million in annual revenues, the stock is bound to become one of the more interesting ones on the OTC Markets. Unfortunately, you’ll need to wait for a while until you can see if their estimates are correct. While you’re at it, you might want to consider one or two things.

On February 24, FRTD said that the 420 Cash Card website (the main source of future revenues) will be ready by March 17. March 17 came, but instead of launching the website, FRTD issued a press release informing us that the payment processor should be up and running by March 24. On March 24 they printed yet another PR saying that it’s finally up and running.

We tried to access it today, but were greeted by a message saying that FRTD are in the process of re-branding it. We were advised that the new look will have “a global impact” on the customers and were asked to check back on Sunday.

This, of course, doesn’t mean that the tens of millions of dollars in revenues will be delayed as well, but we still reckon that keeping it in mind might not be a bad call. We mentioned a couple of other facts in our previous articles and they too might 5LVGI.pngbe worth looking into.

FRTD wasn’t the only ticker to go through some intense trading yesterday. Kenergy Scientific Inc (OTCMKTS:KNSC) registered a dollar volume of around $2 million while logging a 150% jump. Limitless Venture Group Inc (OTCMKTS:LVGI), on the other hand, slipped and fell by nearly 17% despite a promising announcement made by the company around fifteen minutes before the opening bell.

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