GreenWorld Development, Inc. (OTC:FRXP) stock advertising campaign was joined by a second promoter today. The company had their own news to make a further impact as well.
GreenWorld announced intentions to acquire majority shareholding in a UK waste recycling company FE4 Ltd. The process is still in negotiation phase and might not lead to real deal in the end.
Along with the announcement, a $30 thousand dollar promotion run by Raven Consulting Corp. guarantees a one day increase in trading volume. The payment was made by a third party, Wall Street Grand. Two days ago the stock got promoted in another $30 thousand campaign, paid for by Stock Mister LLC, and carried out through newsletter of hototc.com and stockegg.com.[BANNER]
FRXP is one of the wealthier penny stock companies, but still has no business revenue and a questionable balance sheet. For a development stage company, the most troublesome part is the lack of cash or any other liquid assets. The main value lies in property leases, held by GreenWorld. Debt is considerably low, but continues to increase.
The share price advance is limited by the overall value of the company. The market cap is currently near $20 million, thought the net tangible assets of the business are only slightly above $1.3 million. Furthermore, the stock related management’s decisions cause trouble for investors. In addition to continuous stock dilution, shareholders were also presented a 3 for 1 forward split this year.
The share price has been bashing against resistance at 50 cents, and didn’t manage to break that even under very strong volume this month.