Stock Cabin Tout Spectral Capital Corp (OTCMKTS:FCCN) Once Again

Stock Cabin tried to give Spectral Capital Corp (OTCMKTS:FCCN) a boost back on April 11 and it’s fair to say that they pretty much failed. The minute the email hit the investors’ inboxes, the ticker started sliding down and in just ten days it managed to lose around half of its value. Then, not without the help of a host of paid promoters, it clawed some ground back up, but even so, when you compare the share price from around April 10 and right now, you will see that around a third of the value has been lost.

Nevertheless, FCCN recently filed a new financial statement and we were quite eager to open it and find out how they have been doing. When we did, we had to check a couple of times to make sure that we haven’t accidentally opened the report of the wrong company. As soon as you take a look through the most important figures, you will understand why.

• cash: $1 million
• current assets: $1.3 million
• current liabilities: $146 thousand
• no revenue
• quarterly net loss: $737 thousand

If you have read our previous articles, you will know that a couple of months ago, FCCN were in quite a different situation with millions in working capital deficit, huge net losses and not much in terms of cash. So how did they manage to undergo that huge change in just a couple of months?

The cash comes from the sale of common stock. At the beginning of March they sold 1.65 million shares in exchange for $1 million. On the one hand, this is a good things since it means that FCCN finally have enough money to finance their day-to-day operations. On the other, however, it could have a negative effect on the shareholders’ investments in case FCCN fail to generate significant revenues from their much awaited search engine platform.

Speaking of which, their decision to go back to the information technology field of operations might turn out to be a good move since, as you can see from the report, most of their liabilities were removed from the statement as soon as FCCN sold their mineral exploration subsidiary. But how far have they gone with the search engine?

Well, you could say that they’re working on it. Recently they announced that the Beta version of their Android mobile phone application is now publicly available which means that people can test it, see if it works and if they like it, they will probably like the official version as well.

The only problem is, they don’t mention any deadlines about the official launch of the app and an even bigger one could be the lack of certainty in regards to its success. We all know that the software market could be quite lucrative, but it is also true that it’s packed full of big players with even bigger resources. And when you are considering entering the search engine sector, you are facing one of the biggest – Google.

All in all, if their app manages to make a significant impact, FCCN could be in for quite a ride. Still, it is very early to call it for sure and that raises some question around the behavior of the stock. We can all see that it’s pretty volatile, which means that any predictions will be based on crossed fingers and guesswork. One thing that might push the ticker down however, is the increased promotional activity around them. Stock Cabin sent us another email yesterday after the end of the session and it reads pretty much the same things as the one from April. Will the positive news and the better-looking financial statement manage to stop the fall from repeating itself? Only time will tell.