Freedom Energy Holdings, Inc. (PINK:FDMF) was presented as one of the awesome penny stocks by several stock promoters, yesterday. Investors should be aware though, that these promoters had apparently added FDMF to their penny stocks list because of an ordered campaign.
So far, three promoters have been detected with a newsletter dedicated on FDMF, namely Moving Pennies, Penny Stock Rumors and Sizzling Stock Picks. All of the promoters have skillfully circumvented their obligation to specify the details about the compensation and third parties.
However, there is obviously a reason for these promoters to have included FDMF in their penny stocks list. For example, Penny Stock Rumors implies that its employees, affiliates and family member “may own positions” in the company and may buy or sell stock of the company without further notification.
Thus it is not known whether the promotion of FDMF is driven by sheer advertising motifs or there are certain parties who are planning to speculate with the stock.
From a technical point of views, the applied chart of FDMF shows that the stock has formed a positive divergence with the MACD indicator. However, any unexpected intrusion suggested by the promotion may act against this technical set-up.
In addition, the unofficial financial reports of the company show that FDMF stock value has been affected by dilution. As the last quarterly report shows, for the first six months of this year the number of outstanding shares has increased by 45 million.
The report also shows a working capital deficit of $1.5 million and a net income of $50 thousand. The company admits that it will need additional capital resources in order to continue operation.
Thus, investors will need to carefully and objectively estimate the factors influencing FDMF stock at present before checking if FDMF is one of those "awesome penny stocks" that promoters claim it to be.
Their so many energy penny stocks out their its hard to believe.
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