Force Protection (OTCMKTS:FPVD) Blasts Off Once More
Force Protection (OTCMKTS:FPVD) managed to add another 30% to its market value, still fueled by the news of its newest strategic partnership with VeriPic Inc. The news was so impressive that it managed to completely kill FPVD‘s downward momentum – or was it?
Sure, a joining of forces for the purpose of marketing the companies’ complementary products, as the pres release put it, might not be a bad move for both entities. However, the details on the deal, and the ways in which it may benefit FPVD are still unclear.
But you know what IS clear as of right now? The reasons for FPVD‘s prolonged crash. And said reasons are as simple as they can be – FPVD is a mediocre-looking OTC Markets entity which has achieved very little to date.
Let’s just take a moment to remember that the company’s latest financial report featured the following numbers:
- cash – $196 thousand
- current assets – $270 thousand
- current liabilities – $287 thousand
- quarterly revenues – $14 thousand
- quarterly net loss – $411 thousand
And, unfortunately, the fact that FPVD‘s reports look just like that of your OTC Markets underachiever is not even the biggest, most immediately threatening red flag that research on the company yields. No, that would be dilution – and in FPVD‘s case, issuance of stock is a pretty big issue, since the company’s way of doing so is quite toxic.
Reading through FPVD‘s latest report leaves one with the stunning realization that, during a period in which the company’s common stock was worth as much as $0.8 and even $1.5, FPVD sold nearly half a million shares shares at $0.1 a piece.
What’s even worse is the fact that last time we checked, there was still $0.6 million worth of debt outstanding that could e converted into shares of FPVD commons stock at a 40% discounts.
Long story short – with all the shenanigans that FPVD has pulled in recent times, the ticker’s long fall to single penny land looks completely justified. This latest resurgence seems significantly less so. Investors should take all the facts into account, and act accordingly.