Friendable Inc. (OTCMKTS:FDBL)’s Recovery Didn’t Last
Friendable Inc. (OTCMKTS:FDBL) managed to climb back over the penny threshold on Monday, but it looks like its hype run has ground to a halt once more in yesterday’s trading.
This is a somewhat surprising turn of events, seeing as how FDBL published its latest piece of optimistic PR on Monday. The logic under which FDBL usually operates dictates that issuing another press release should have kept the ticker going up for a couple of days. So why didn’t it?
Well, we are talking about a company that keeps pumping out convertible notes with provisions allowing their holders to turn said debt into stock at a rate of “50% of the lowest closing bid price (subject to a $0.004 ceiling price) for the common stock during the twenty (20) consecutive trading days immediately preceding the conversion date”.
Investors would probably do well to consider the possibility that maybe, just maybe, that has something to do with FDBL‘s tendency to get its hype surges cut short.
Overall, an OTC Markets pinksheets company crashing every now and then is hardly something unheard of, and frankly it is to be expected when the financials of the company in question look like this:
- Cash – $19 thousand
- Total current assets – $300 thousand
- Current Liabilities – $2.5 million
- Quarterly Revenues – $11 thousand
- Quarterly Net loss – $1.2 MILLION
In summary – even basic due diligence on FDBL is enough to reveal a staggering amount of pitfalls along the path of both investors who want to make money by aggressively trading the company’s stock and those who wish to commit to it for a longer period of time.
Let the buyer beware.
