Beware of Forcefield Energy (FNRG)

By Unknown Thursday, February 26, 2015
ForceField Energy (FNRG) has been popping up a lot on recently, so I took a look at the company. I have never seen such an overbought stock before in my life, with a current RSI reading of 94.

This stock has seen a sharp increase in volume in late January/February, primarily driven by paid promotion from Red Chip TV and The Dream Team Group. A fake research report on the company was issued by CapRock Research, which gave a "conservative" $8 price target. CapRock is connected to Small Cap IR, which is a subsidiary of The Dream Team Group, a stock promoting firm.

Of the 9 PRs released for FNRG in 2015, 5 of them have been related to paid stock promotion.

Given the company's current financials, and its bloated $135M market cap valuation, I would steer clear of this promoted stock. FNRG's cash per share is $0.03, and its book value per share is $0.26.

*No equity position in FNRG is being held, and there is no future plan to trade this stock.
The Wall Street Fox

The Wall Street Fox utilizes fundamental and technical analysis to generate investment ideas. TWSF holds a MBA, and is currently preparing for the Chartered Market Technician (CMT) designation.

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