Stockwatch update: FFN

[will76]

Down again today to $5.14

Opened at $10 just a couple weeks ago and has already dropped to 1/2 it's value.


Penny stock here we come!

[L-Pink]

And less than 200,000 shares traded.

[L-Pink]

ORFG.PK the gold stock being pumped here is at 0.14 ... Just a week till it hits the $26.00 level being pushed, lol.

[SZNY]

What will happen if the share value will go further down? Will it be kicked from the Nasdaq and what for implications would it have for the company itself?

I' m not so familiar with IPOs and the behavior on Stock Exchanges

[Adraco]

Originally Posted by SZNY

What will happen if the share value will go further down? Will it be kicked from the Nasdaq and what for implications would it have for the company itself?

I' m not so familiar with IPOs and the behavior on Stock Exchanges

Say for the sake of the argument that 1 000 000 shares were issued during the IPO at $10 a piece. Also assume that 1 000 people bought 1000 shares each, for a total of $10 000 per person. A total of $10 000 000 were raised during the IPO, let's call that share capital.

Now the share price is $5 a piece, so the ones who bought at $10 have lost 50% of their investment. However, they still have the same amount of shares, 1000 each.

Let's assume the stock goes even further down, to say $1 each. It now becomes very impractical to trade the stock, even up or down 1 single cent immediately means 1% up or down on the share price, so the fluctuations become quite high, the share price can easily go up or down 5-10% over a day and thus becomes quite unpredictable. Such large fluctuations doesn't benefit anyone (at least not in our simplified model, I know about quantum trades and volatility trades, but let's leave that out for now). Investor want to be able to sleep at least somewhat comfortable at night and some predicatbility is desired. You wanna be able to go out for lunch without having the stock plunge 10% on you and you ending up losing money because you didn't sit at the computer.

So, we have our very low share price, of say $1. The company can then decide to do a reverse split, and say that for each 10 shares you currently have, youre going to get one new. We will simply merge ten old shares together into one new. Thus each new shares then take over the weight and value of 10 old share. So all other things equal, the new share then becomes valued at $10 and in turn each investor now only has 100 new shares.

So if a stock becomes valued too low per share, a reverse split will almost always take place to ease it's tradability and avoid to large jumps up and down.


The ultimate case is the "lottery share", a company which is on the brink of bankruptcy or have done so poor deals that it's almost completely gone and is therefore now trading at $0.01 per share. Any positive news, any little poistive signal at all will cause the share to rise, even if just a little, it will go up one cent, and thus the increase is 100%. So had you invested $1000 into one cent shares, you now have $2000.

That's basically how it works. Of course there's much more to it and ups and downs on each side, but in a simplified bare model, there it is.


Greetings to a certain girl, active on this message board, out taking care of the girls tonight. She knows who she is!

[V_RocKs]

Originally Posted by L-Pink

ORFG.PK the gold stock being pumped here is at 0.14 ... Just a week till it hits the $26.00 level being pushed, lol.

yes, but on April 11th it was .05 (cents)... and on April 24th peaked at about 38 cents.

So had you thrown $10,000 on it when it was being pushed you could have made $66,000!

And even if you waited until April 25th to be sure the peak ended and sold at .30 you still would have made $50,000.

Which is the penny stock game... People who do such things make LARGE sums of money in very short periods... People who don't know what they are doing or get caught up in the idea that the company will be $2.58 some day lose large sums of money in a very short time.

[L-Pink]

You can only really sell a stock like this while it's being pumped otherwise the volume just isn't there. It sucks it was being pumped here.

[will76]

Originally Posted by L-Pink

You can only really sell a stock like this while it's being pumped otherwise the volume just isn't there. It sucks it was being pumped here.

more like it was being punked here, by a few idiots. I wonder if they are "still buying up as much as they can" lol. I'll wait till it gets down to .05 cents a share and maybe buy some then wipe my ass with it.

[L-Pink]

Originally Posted by will76

I'll wait till it gets down to .05 cents a share and maybe buy some then wipe my ass with it.

You gave me an idea. I'm going to write to the SEC and suggest stocks like this be issued on 2 ply certificates.

[iamtam]

if a stock drops below a certain point ($1) for an extended period of time, or fails to have a minimum capitalization, then they will move to delist the stock. ffn doesnt have that far to go to reach that point. they are more than half way there.

[DBS.US]

I stay away from pink sheet stocks from gold companies based in China

ORFG.PK
Orofino Gold Corp. is a gold producer based in China

http://www.pinkinvesting.com/article...iting-for-News

[merina0803]

total garbage

[V_RocKs]

Originally Posted by L-Pink

You can only really sell a stock like this while it's being pumped otherwise the volume just isn't there. It sucks it was being pumped here.

Right.. which is why you do relatively small numbers per stock and spread it over a lot of them... Dumping $10K worth of it on that date or even for the next 4 to 5 days would have been almost instant buy.

[SZNY]

Originally Posted by Adraco

Say for the sake of the argument that 1 000 000 shares were issued during the IPO at $10 a piece. Also assume that 1 000 people bought 1000 shares each, for a total of $10 000 per person. A total of $10 000 000 were raised during the IPO, let's call that share capital.

Now the share price is $5 a piece, so the ones who bought at $10 have lost 50% of their investment. However, they still have the same amount of shares, 1000 each.

Let's assume the stock goes even further down, to say $1 each. It now becomes very impractical to trade the stock, even up or down 1 single cent immediately means 1% up or down on the share price, so the fluctuations become quite high, the share price can easily go up or down 5-10% over a day and thus becomes quite unpredictable. Such large fluctuations doesn't benefit anyone (at least not in our simplified model, I know about quantum trades and volatility trades, but let's leave that out for now). Investor want to be able to sleep at least somewhat comfortable at night and some predicatbility is desired. You wanna be able to go out for lunch without having the stock plunge 10% on you and you ending up losing money because you didn't sit at the computer.

So, we have our very low share price, of say $1. The company can then decide to do a reverse split, and say that for each 10 shares you currently have, youre going to get one new. We will simply merge ten old shares together into one new. Thus each new shares then take over the weight and value of 10 old share. So all other things equal, the new share then becomes valued at $10 and in turn each investor now only has 100 new shares.

So if a stock becomes valued too low per share, a reverse split will almost always take place to ease it's tradability and avoid to large jumps up and down.


The ultimate case is the "lottery share", a company which is on the brink of bankruptcy or have done so poor deals that it's almost completely gone and is therefore now trading at $0.01 per share. Any positive news, any little poistive signal at all will cause the share to rise, even if just a little, it will go up one cent, and thus the increase is 100%. So had you invested $1000 into one cent shares, you now have $2000.

That's basically how it works. Of course there's much more to it and ups and downs on each side, but in a simplified bare model, there it is.


Greetings to a certain girl, active on this message board, out taking care of the girls tonight. She knows who she is!

Thanks Adraco for the detailed explanation! Its interesting to see how a company like FFN is doing on the stock market, for sure I have to read more about how it all works. Too bad I dont really have the time for it at this moment.

Do yo mean some girl I know and should to send your greetings?

[SomeCreep]

Once it hits $5, it's going a lot lower. That's a psychological dumping level, because most institutions can't own stocks under $5/share.

[will76]

Originally Posted by SomeCreep

Once it hits $5, it's going a lot lower. That's a psychological dumping level, because most institutions can't own stocks under $5/share.

Almost there... $5.09 at the moment and dropping.

[InfoGuy]

FFN hit a new intraday low of $4.93 and closing low of $4.99.
It's only a matter of time before FFN gets the delisting notice.

FFN

[L-Pink]

And only 105,000 shares traded.

[will76]

Originally Posted by InfoGuy

FFN hit a new intraday low of $4.93 and closing low of $4.99.
It's only a matter of time before FFN gets the delisting notice.

FFN

[thepiper]

Originally Posted by InfoGuy

FFN hit a new intraday low of $4.93 and closing low of $4.99.
It's only a matter of time before FFN gets the delisting notice.

FFN

The company may suck but it's got a long way to go in order to be delisted from Nasdaq Global Markets. Even then it will just move to Nasdaq Capital Markets.

Share price != Market Value

[Just Alex]

XXX Jay should buy this one.

[merina0803]

Originally Posted by Just Alex

XXX Jay should buy this one.

[Tasty1]

That the stocks go to 1 $ is bad.

But it is even worse that they won't be able to get new fundings for their debt.
So they have to perform very well the coming months.

[djswivle]

ANyone short this stock?

[will76]

Originally Posted by Bjorn_Tasty1

That the stocks go to 1 $ is bad.

But it is even worse that they won't be able to get new fundings for their debt.
So they have to perform very well the coming months.

not going to happen, they are hemorrhaging money, losing 10's of millions a year and have some big pending law suits that can sink them. This is going to be a penny stock in the near future.

[will76]

http://www.marketwatch.com/story/fri...011-2011-06-02

should have a big drop in stock price after that is released.

[djswivle]

Originally Posted by will76

http://www.marketwatch.com/story/fri...011-2011-06-02

should have a big drop in stock price after that is released.

Most of the time people sell on the good news..ESPECIALLY on bad news lol All the more reason to short this stock

[Tasty1]

Originally Posted by djswivle

Most of the time people sell on the good news..ESPECIALLY on bad news lol All the more reason to short this stock

I couldn't find where to go short, else i would have done it.

[merina0803]

Originally Posted by Bjorn_Tasty1

I couldn't find where to go short, else i would have done it.