FBC Holding, Inc. (OTCMKTS:FBCD ) Continues To Gain Momentum
It is turning out to be a great week for FBC Holding, Inc. (OTCMKTS:FBCD). On Monday they reached nearly 2 million shares traded albeit the price only nudged up by 4.6%. All this changed the very next day when they opened with a 42% increase and were able to support it throughout the day to close at $0.013.
FBC Holding, Inc. is a company with long and rich history. They began their business as Wave Uranium Holding with the intention of acquiring mineral land positions. In 2009 the company abandoned that idea and decided to try something different. More specifically they had 3 goals : 1) product placement in television production and movies; 2)the sale of mini-choppers and 3) internet platforms focused on social networking. As you probably have already guessed the plan didn’t work out and was scrapped promptly. After that they tried their hand at the toy business alongside Super Rad Corporation. And after that we come to the interesting part when FBCD announced that they had entered into licensing agreements with Sports Technology, Inc. for the exclusive worldwide marketing and distribution of all of Sports Technology’s existing intellectual property, particularly their Flowboard product.
But when in late 2012 FBCD changed their management and brought on new officers and directors, they couldn’t find any evidence of an existing agreement between FBCD and Sports Technology. Even worse Sports Technology failed to provide any documentation that it actually possessed any rights to the IP that it sought to sell. Now FBCD are trying to get back on their feet but that won’t be easy as the last 10-Q report for the period ending January 31 contained the following:
- $1360 cash, which are also their total current assets
- $3.9 million total current liabilities
- no revenue for the past 6 months
- $23,478 net loss
The company currently has approximately $710,000 in convertible debt all of which is anticipated to be converted into common shares at a discount to market.
For now the new management executed two letters of intent with companies that we hope are capable of generating some sort of revenue. One will bring FBCD back to its mining roots but this time around they will be searching for gold in Nicaragua and the other is with a provider of used and refurbished machines utilized in the printed circuit board and surface mount technology industry.
When you add in to the mix the pump campaign started on May 5, it makes investing in FBCD an extremely risky venture. Sizzling Stock Picks, who began the promotion disclosed receiving $7000 for their efforts and yesterday a number of other newsletter joined in as well. With nothing to support it, the ticker may be crushed under the promotional pressure. The same already happened back in Mach when the Sizzling Stock Picks touted Discovery Gold Corp. (OTCMKTS:DCGD).
As any other pennystock company FBCD carries a lot of risks for investors and that is exactly why doing your own due diligence is a necessary requirement before trading.