Frozen Food Gifts Group, Inc. (OTCMKTS:FROZ) Expected to Crash to Triple-zero Prices

Frozen Food Gifts Group, Inc. (OTCMKTS:FROZ) is right on track to be wiped out, as the losses are accelerating, and investors seem to have lost hope. FROZ is even nearer the triple-zero positions after gapping downward on Wednesday’s trading. FROZ slid down more than 25% to land at $0.0023, as the daily number of shares sold remained high, though dollar volumes shrank to $364,000. FROZ0522.png

What is really sad is just about a month ago, FROZ seemed to be rising robustly as the OTC vehicle for a company producing rather promising motorbike components. All expectations were for a rise toward multiple pennies, but unfortunately FROZ turned out just as disappointing as other overhyped tickers, despite the lack of promotion and the relatively rare press releases. VEND0522.png

The latest update on the financial situation may have served to accelerate the fall, as the allegedly immense contribution of APT Group and the motorbike engine sales still don’t show up in the bottom line. FROZ revealed:

  • $169,770 cash
  • $1.7 million net loss for Q1, 2014
  • Still no revenues

There are still opinions that the selling may stop just as the ticker is on the verge of becoming a triple-zero position. Other investors’ opinions point out that there may be long-term holders. In the case of FROZ, this may mean waiting for months even, so it is best to estimate whether holding the ticker would be appropriate. Also, FROZ has more than 3.9 billion shares outstanding, a level where many OTC companies consider a reverse split to improve the share structure.

At this price range, FROZ remains an outlier, and cannot even be perceived as an alternative to the ubiquitous marijuana stocks. Instead, it is a separate case with its own risks.

Still, if you are seeking a stock selection that is not affected by the matters of the MMJ market, one of the alternatives is Fresh Healthy Vending International, Inc. (OTCBB:VEND), the producer of vending machines that claims it would be expanding its network in 2014. VEND survived once again, lifting the price up toward $2.70. VEND has been damaged by a severe drop following several promotions through emails and even paper mailers. Thus, VEND reached a peak near $10, but lost most of the value quickly after the promotional efforts slackened.

Kona Red Corp. (OTCBB:KRED) is in a similar situation, and the underlying qualities of the business hold up the stock price rather well. After crashing by more than 66% from the promotional peak, KRED recovered and traveled as far as $0.69.

So if indeed FROZ would become attractive just before it crashed to nothing, it may be an accessible choice. This means that any growth from the rock- bottom positions would be welcomed, and could be rather large. Still, the ticker can wipe out a large percentage of investments, so plan the size of purchases and the timing.

 

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