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Old 01-10-2012   #19
RawAlex
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Default Re: FFN STOCK (AFF) Crashes to 1.47 a share + A Securities Class Action Lawsuit filed

Yup, it looks like the run up was done by a few higher volume purchases. GLOBAL INVESTMENT VENTURES LLC, a company that is 10% or higher owner has purchased 15k shares at 54 cents or so... not a big number, but if the stock price gets pushed back up a bit, they can perhaps recover some of their (seemingly significant) losses - especially if they bought at IPO or were awarded pre-IPO.

A single day run of 800,000 shares pushed the price up as noted before, but since then, the price has been slowly sliding away gain. They did get the market cap back up over 20 million, but the stock is stuck soundly under $1, which means it is still very possible that there may be a delisting at some time in the future, or at least a reverse stock split to try to shore up the price of the stock.

There also appears to be at least 4 legal actions pending regarding losses investors may have suffered, apparently in relationship to insider shares sold out of lockup.

The funny part about FFN is that, excluding an incredible and increasing amount of money spent on servicing debt, they might actually be profitable. Losses per share are down, but mostly because the number of shares in play went up.

Looks like a perfect target for an asset sale... because they don't appear to be generating enough net revenue to retire the debt, which keeps them from being profitable.
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