Robert, Several things bother me about FAUX. And these are the sort of things we all need to be looking at, prior to jumping into such companies. . . First, did you know the company did a reverse split earlier in the year, just to stay above $1.00, so they wouldn't get delisted to the OTC? Second, FAUX makes fake jewelry, hence the name. . . this is what they do and this is what they know. Why suddenly are they merging with an "internet" company? Could it be because their share price started drifting below $1 again, in fact hitting 0 7/8 just a few weeks before the merger was announced? ? Third, with such suspicions [especially reverse splits], I look at where the company headquarters is. . .and lo and behold a suburb of Denver. I am willing to bet that if you were to research the history of this company in the Edgars, you would find that it started out as a mining stock. And finally, the stock has risen 7 times in a few weeks, due to this merger. Has anyone actually seen the amazescape product at work? Does it do what they claim? Is there a market for it? Are they infringing on other companies patents? What other companies are in the same business? If they invented this process, then they would hold the patent registration for it [remember anyone can say 'patent pending']
I am a believer that the history of a company is a good indicator of its future. You want to know where it is going to end up? Look where it has been.
Before taking a position, these are the hard questions I would be trying to answer. It did move fast on an attractive low float. . .and it could move more. . . but I would only play it as a momentum or daytrade and try to scalp it on news. . . otherwise, it could be a long way down.
Rande Is |
