Fortitude Group, Inc. (OTCMKTS:FRTD) Explodes At The End Of The Week
Although Friday’s session began rather uneventful for the stock of Fortitude Group, Inc. (OTCMKTS:FRTD) things didn’t stay that way for long. After fluctuating around $0.04, the price of its previous close, for the whole morning a few minutes before 1 o’clock FRTD exploded and surged up reaching a high of $0.078. At the end of the session the stock had retreated a bit but still found itself at $0.062, a gain of more than 53%.
Sadly the massive jump was not caused by a significant progress with the business plan of the company nor by a overly-positive PR announced. Instead FRTD was chosen to be the next target of an investor group called the wolfpack. They are focused on the marijuana industry pennystocks and have caused similar positive surges for their previous picks – AvWorks Aviation Corp. (OTCMKTS:SPLI) and Minerco Resources Inc. (OTCMKTS:MINE).
Both stocks did tremendous runs up the chart but as you can see hype cannot support such huge valuations for long and by now SPLI has dropped by close to 40% from its recent highs while MINE is going down at a slower pace losing around 30%. If the companies are left to support the inflated share prices on their own even harsher corrections are not out of the question. That is why it is always for the best to do your own due diligence before jumping into trades involving pennystocks.
FRTD is no different. The company has numerous serious red flags around itself that demand the use of caution. In our previous articles we warned our readers that FRTD‘s pre-paid card that is supposed to bring around $33 million in projected annual revenues was launched on March 24 but just a week later was taken down for re-branding that will have “global impact”. Well, the second launch that should have taken place yesterday did not happen and has been re-scheduled for April 9.
FRTD often mention tens of millions of future revenues in their PR articles but their current state seems rather grim with just $2002 in cash and total current assets at the end of September. The deal with PRIMARQ, Inc, that should bring $200 million in annual revenues according to latest PR, has still not been finalized despite the fact that more than 9 months have passed since its first announcement.
But the problems with the company go even further. There is virtually no information on the web about two of FRTD‘s marijuana products – the VaporVites mentioned in the press release from 4 days ago and the MariMist from February 28.
For now FRTD might go even higher boosted by the new influx of investors and could offer chances for quick gains but be sure to weigh in all the risks and plan you investment accordingly.