FormCap Corp (FRMC)

[FinalFrontier]

Initially, I thought this would be a poor sector to try to pull a scam since you would have to get a state government to approve oil permits. After all, if you're thinking of ways to pull a scam, you wouldn't want something that would involve government paper trails.

However, the more I think of it, this would potentially be an easy scam to pull off on investors. You could always say that you intended to drill when you never really did. The state gets their money for the drill permit. They aren't going to investigate (or try to prove) that you never really intended to drill. It would be hard to do and they don't care to bother with it. You could still probably come out ahead even after the cost of equipment rental or in this case, waiting in line for it.

Not saying the company is guilty of this, but based on the sequence of events last May through August, I seriously question what was really going on. The former CEO leaving right before the supposed drill date? A sudden reverse split right before the intended drill date and right when the sheep were expecting a possible oil strike? Not re-filing their intent to drill in August?

This might be good to play for a pumped run, but I wouldn't play it expecting them to do what they say they will do.

Just my opinion.