Firemans Contractors, Inc. (FRCN)

[$TRIG$]

FRCN Quick DD

A/S: 600 Million. Previous R/S in mid 2013 resulted in a 19 mil A/S. The A/S was subsequently increased to the current level. As long as this does not increase more, this company should be ok with the increasing revenue stream.

O/S: Awaiting a response from the company, but 1.1 billion shares have been traded since the company stated there were 74 million shares outstanding as of 14 November. Obviously a large number of these shares were dilution and have been added to the O/S.

Revenue?: Yes, up 64% Year over Year for the three months ended Sept 30 2013. Annual revenue estimated at 1.4 million at this quarters level, however if the rate of increase continues, we will see much higher annual levels. Operating expenses have not budged in comparison to the revenue increase. Overall, revenue is increasing and the company will soon be in net profit territory based on the trend. Most likely in 2014 imo.

Debt: This is all current liabilities and no LONG TERM….a big plus imo. Current liabilities as of 30 Sept 2013 were 1.4 million. It’s been pretty clear that they have been diluting heavily to pay the notes and loans due that total approximately 1 million. As stated in the last 10Q: “Unpaid principal and interest outstanding under the Note, is due on January 1, 2014”

Overall synopsis: This is a new company and they have to dilute in order to the bills. Every filing says the same thing…”we will finance our operations through debt/equity financing.” However, unlike most OTC stocks, this is a real company WITH real income. I like the story and prospects of this company, however, the dilution machine needs to stop and they CAN NOT raise the A/S again if traders/investors are to see any type of positive returns.

Disclosure: I took a starter at .0007 on Friday. GLTA.

Link to Facebook, which contains a good YouTube video:
https://www.facebook.com/pages/Firemans-Contractors-Inc-otc-frcn/345265302166087