Frozen Food Gift Group, Inc. (OTCMKTS:FROZ) Recovers a Fifth on Bargain Buying
Frozen Food Gift Group, Inc. (OTCMKTS:FROZ) betrayed the expectations it would move into the range of a few cents, and instead sank back to double-zero positions. Wednesday stemmed the losing trend for a while, as the ticker regained 21% to $0.0057, on dollar volumes above $555,000. The buying offset one day of selling, but the enthusiasm has clearly worn out for FROZ. 
Unfortunately, the reverse merger with Motovox mini bikes did not do anything but cause a temporary boost to the stock, later wiped out by selling. And FROZ does not behave as the OTC shell of a company that allegedly has millions in revenues. Instead, FROZ behaves like a speculative underpriced ticker, and not like the powerhouse that APT Group, the motorbike subsidiary, seems to be.
On top of all, the OTC landing page for FROZ holds a warning that no firm is making a market for this ticker, and the selection is listed “unsolicited quotes only”. This may mean a difficulty in selling the stocks. What is still positive is that FROZ has some days of significant buying, but this could be to cover short positions. One of the most problematic things is the 3.9 billion shares outstanding, with an unknown free float, which may mean too many shares waiting in the sidelines to be offloaded. Also, even if FROZ manages to show business success through APT Group, the stock dilution may limit the price growth.
The earliest date for any financial information from this company is given as June 6th, and by that time the ticker may have taken an entirely different route. FROZ is also a bit slow with corporate updates, even as APT Group looks rather active with tests and trials to distribute its products.
Now, we have to wait until June to see if FROZ has expanded beyond the mere 1,200 cash it held at the end of last year. The other landmarks for this company are:
- $156,000 annual revenues
- $2.18 million net loss
As it is easily seen, despite the legitimate frozen food and cooling displays business, FROZ was buried in debt and inflated its stock structure too much. Now, the one hope at investors’ forums are the upcoming audited financials, and the other reason is the low price that may be seen as a bargain.
What is even stranger is that a message on Investors’ Hub suggests an upcoming ticker and name change to reflect the brand of APT Group. The event is supposed to take place at the end of the month- but there is no way to know if FROZ will be able to revive its flagging stock price, even with fresh and significant updates.
FROZ initially resembled World Moto, Inc. (OTCBB:FARE) in its bid to supply the world motorcycle market with innovative products. In the case of FARE, the product was a taxi meter for bike taxis, but so far the stock price has been drifting sideways, unable to go much above $0.10, and now dropping to $0.08.
The other recent mover so far unrelated to the MMJ sector is Monarc Corp. (OTCMKTS:MONA), which is creating a spike all in the sub-penny range.
If you choose any of those tickers, be aware of your time frame and the inherent volatility in underpriced stocks. In the case of FROZ, the company has gathered many warnings and requires heightened vigilance.
