Fortitude Group Inc (OTCMKTS:FRTD) Makes A Strong Recovery
The stock of Fortitude Group Inc. (OTCMKTS:FRTD) is going on a wild rollercoaster ride this week. Tuesday saw it adding the massive 144% to its price just to slash nearly a quarter of those during the very next session. Yesterday momentum once again shifted and FRTD jumped up by 29% recovering most of the lost positions and closing at $0.0405.
Even the daily performance of the stock showed a lot of turbulence. FRTD opened with a gap up but quickly started sliding downwards and fell as low as $0.0272 before rallying up during the second half of trading. As a whole, 71 million shares changed hands, volume which is quite lower than the ones from the previous two sessions but still nearly three times bigger than the average for the company.
The chart shows that for now optimism among investors is holding strong despite the numerous red flags around the company. Just two days ago they announced a distribution agreement with VaporVites for a herb vaporizing system but unfortunately we couldn’t find any information about such company on the internet. We got the same result when we tried to search for the previously announced joint venture with MariMedical Pharmaceuticals for the “revolutionary” medical marijuana products MariMist.
The company has also revealed its plans to do a share back of between 100 million and 250 million shares that should take place over the next 365 days. The period is quite long but we still have our doubts when according to the latest quarterly report FRTD had exactly $2002 in cash AND total current assets. The company also failed to file its annual report prior to March 31 and instead submitted a notification of late filing that gives them a 15 day postponement.
In its PRs the company often mentions projections about receiving millions and millions in annual transaction revenues from its 420 Prepaid Discover Card that was launched last week. Well, for now they have received around 5000 pre-orders and apparently the service is going through a re-branding that should have “global impact” according to the official site.
And since we are talking about sites FRTD have created two websites for its share buyback and the so-called special share issuance, which we covered in one of our previous articles, but their official site is still under construction.
Backed by all the hype around the marijuana industry FRTD might be able to sustain its inflated share price for now but the company must show a significant progress with its business plan. Do your own research and use caution when trading with any pennystock. This goes double for the multitude of companies that decided to switch to the marijuana industry in the last couple of months.
Another recent runner – Terra Tech Corp. (OTCMKTS:TRTC) is going through some heavy corrections this week. By now the stock has closed in the red for three sessions in a row and after slashing another 8% yesterday it has once again dropped below the dollar mark currently sitting at $0.91. Growlife, Inc. (OTCBB:PHOT), one of the leaders in the marijuana industry, closed the day with a 2% loss after it plunged downwards less than hour before the end of the session.
