FutureWorld Corp (OTCMKTS:FWDG) Rebounds at Last
On July 23, the people behind a company called Cohen Grassroot Research Inc. wrote a research report on FutureWorld Corp (OTCMKTS:FWDG). It’s on the long side. It’s actually 53 pages long which is an awful lot of writing dedicated to a stock that cost just $0.0009 at the time of the report’s publishing.
So, why did the people behind Cohen Grassroot Research spent all this time writing about FWDG? If you are patient enough to read through the entire report, you’ll reach the disclaimer and you’ll see that they have received 17 million shares of common stock in exchange for their effort.
But does that mean that you shouldn’t trust them? Not at all. In fact, you should probably take a look at the report yourself before you decide what to make of it. What we can say, however, is that Cohen Grassroot Research gave FWDG a price target of $0.0078.
In other words, they predicted a 766% jump for a company that has the following financials:
- cash: $66 thousand
- current assets: $868 thousand
- current liabilities: $2.1 million
- quarterly revenues: $7 thousand
- quarterly net loss: $267 thousand
The company with the less than perfect financials which will supposedly increase its market cap seven-fold has also gone through quite a lot of dilution. The O/S count grew from just over 450 million on June 30, 2014 to more than 1.1 billion at the end of Q2 of this year. Sadly, although FWDG is registered with the SEC, its financial statements aren’t extremely informative. The latest 10-Q, for example, fails to explain how the 387 million shares that were issued during the quarter came to be.
We don’t know whether this has anything to do with it or not, but Cohen Grassroot Research’s report failed rather miserably at drawing any attention to the stock. The trading volumes remained pitiful and the ticker continued to fluctuate between $0.0009 and $0.0005 per share.
Yesterday, however, it shot up. Nearly 190 million shares changed hands in a matter of six and a half hours, and after a 66% jump, FWDG closed the session at exactly $0.001 per share.
The reason for this is a press release which hit the wire shortly before the opening bell. It said that the company will try to develop and introduce a line of cannabis based energy and chill drinks. Once available, they will be sold both online and through dispensaries.
Apparently, some people think that this is enough to justify a 66% jump. But is it enough to make Cohen Grassroot Research’s price target more realistic? And is it enough to minimize the effect of all the problems we listed above?
As always, it’s up to you to decide.