Rapid Fire Marketing, Inc. (OTCMKTS:RFMK): The Next Pot Stock

Rapid Fire Marketing, Inc. (OTCMKTS:RFMK) seems to be blossoming in 2014, and the last two days proved extremely successful. On Thursday, RFMK added more than 56% to $0.0061, on dollar volumes of $2.79 million. While the ticker saw some glitches, it is now at the peak of a rather bold rising trend. What is strange is that the momentum is happening seemingly without the boost from paid promotions or even PR from the company, not since a brief update on the company’s development from the end of last year. RFMK0702.png

The key to the mystery is in the business model of RFMK, which is making use of the recently liberalized cannabis legislation. RFMK produces and distributes vapor inhaler products, and thus lines up with e-cigarette makers in their bid for sales once marijuana companies set up shop in more markets.RFMK0702.png

Unfortunately, we can hardly gauge the stability of this business, as this pink sheet has not filed any earnings results for a while. A voluntary disclosure on the OTC markets page shows:

  • $2,000 cash
  • $1.46 million receivables
  • $654,000 total liabilities
  • $40,000 revenue for 2012
  • $1.44 million net loss

While RFMK shows some activity, this is only a moment in time, and for now, this double-zero selection moves mostly on future expectations, rising along with other vaporizer producers. Investors’ forums show favorable opinions, seeing RFMK as the rare opportunity that is currently underpriced, but holds longer-term potential.

If you are looking for a similar opportunuty, mCig, Inc. (OTCBB:MCIG) looks rather more solid, both in exchange tier and price range- but the price growth is also stunning. MCIG continues upward with minor setbacks, currently around 49 cents.

Strangely, outright e-cigarette sellers that have not mentioned the cross-application of their products are doing worse. The recent high mover, Vapor, Corp. (OTCMKTS:VPCO) also expected success and wider marketing in the new year, and even prepared with a reverse split. But now, VPCO is still slipping, as it did not manage to hold on to $10 or gain more. VPCO tumbled toward $6.50 on two days of selling and sharper downward shifts.

In the case of RFMK, the double-zero status is a red flag, though in the past days such companies rise to the top with promise of fast gains. If you see RFMK as different from other tickers in that price range, still keep in mind the potential volatility. Do your research before expecting to gain on this newcomer.

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