Read the Fine Print: PVFR, AMEL, and FCCN in Detail
Spectral Capital Corporation, Explore Anywhere Holding Corp., and Amerilithium Corp. are looked at under a microscope.
Like the way the buying volume is flowing in for certain small cap stocks today? Before you celebrate too much, you may want to take a closer look at these companies, and understand exactly why they're on the move.
Take Spectral Capital Corporation (FCCN) for instance. It's on everyone's radar today as part of a one-week advertorial campaign that cost a third-party $35K. This PR effort started yesterday, and though volume was clearly better, the lethargic beginning does not bode well for any traders who are thinking about jumping into FCCN.
Spectral Capital Corporation is a precious metals miner that's low on revenue but high on hopes. There's nothing wrong with exploratory mining, as some companies do indeed strike gold (figuratively and literally). Most explorations end in failure though, so the reward is paired with equal risk. The big question mark here is capitalization. The company is already sitting on a market cap of $188 million. That's the equivalent to about two tons of gold (just the gold - not even the expense to dig it up), which as any gold veteran can tell you is a whole lot to find.
Amerilithium Corp. (AMEL) actually popped up as a 'buy' candidate yesterday for us, based on the high-volume surge that shook the stock out of a rut and what looked to be into a nee bull trend. Now we know what happened - it was the beginning of a $45K promotional campaign that will last this whole week. We still like the idea, though in retrospect one has to wonder of the ridiculous move we saw from AMEL after we posted yesterday's thoughts pretty much tapped out the maximum move here - it's now at $0.38, up from Friday's close of $0.29, and up the $0.34 we saw when we posted our comments.
The company mines industrial and precious metals, with lithium being one of them. Like so many young miners, Amerilithium Corp. has no revenue, and is only 'close to' digging. There's nothing wrong with getting from point A to point B; just know that you're buying a $25 million company that's doing nothing yet, and worse, has a ton of more developed (and better funded) competition.
Explore Anywhere Holding Corp. (PFVR) is the beneficiary of $50K laid out for one week's worth of promotion. The campaign appears to have started just yesterday, and the sudden volume swell with bullish movement supports that notion.
It's an interesting, albeit speculative, trading idea. The company has created anti-bullying software that's currently in beta testing that could launch commercially on Q2. So, there are no trailing revenue or earnings to use a basis to value PVFR, there's at least a tangible product (which is more than some developmental-stage companies can say). How much software does Anywhere Holding Corp. need to sell to make it worth the current $0.35 per share? Well, the current market cap is $92 million. Software is a very high-margin business, but it would need to sell around a couple hundred million worth annually - at a minimum - to justify that value and any price appreciation. It's possible to be sure, though a definite challenge. (But hey - they're closer to that goal-line than a lot of other companies are.)
Considering FCCN is still closer to lows than highs and the effort is just getting started, we see some near-term upside here.
Take Spectral Capital Corporation (FCCN) for instance. It's on everyone's radar today as part of a one-week advertorial campaign that cost a third-party $35K. This PR effort started yesterday, and though volume was clearly better, the lethargic beginning does not bode well for any traders who are thinking about jumping into FCCN.
Spectral Capital Corporation is a precious metals miner that's low on revenue but high on hopes. There's nothing wrong with exploratory mining, as some companies do indeed strike gold (figuratively and literally). Most explorations end in failure though, so the reward is paired with equal risk. The big question mark here is capitalization. The company is already sitting on a market cap of $188 million. That's the equivalent to about two tons of gold (just the gold - not even the expense to dig it up), which as any gold veteran can tell you is a whole lot to find.
Amerilithium Corp. (AMEL) actually popped up as a 'buy' candidate yesterday for us, based on the high-volume surge that shook the stock out of a rut and what looked to be into a nee bull trend. Now we know what happened - it was the beginning of a $45K promotional campaign that will last this whole week. We still like the idea, though in retrospect one has to wonder of the ridiculous move we saw from AMEL after we posted yesterday's thoughts pretty much tapped out the maximum move here - it's now at $0.38, up from Friday's close of $0.29, and up the $0.34 we saw when we posted our comments.
The company mines industrial and precious metals, with lithium being one of them. Like so many young miners, Amerilithium Corp. has no revenue, and is only 'close to' digging. There's nothing wrong with getting from point A to point B; just know that you're buying a $25 million company that's doing nothing yet, and worse, has a ton of more developed (and better funded) competition.
Explore Anywhere Holding Corp. (PFVR) is the beneficiary of $50K laid out for one week's worth of promotion. The campaign appears to have started just yesterday, and the sudden volume swell with bullish movement supports that notion.
It's an interesting, albeit speculative, trading idea. The company has created anti-bullying software that's currently in beta testing that could launch commercially on Q2. So, there are no trailing revenue or earnings to use a basis to value PVFR, there's at least a tangible product (which is more than some developmental-stage companies can say). How much software does Anywhere Holding Corp. need to sell to make it worth the current $0.35 per share? Well, the current market cap is $92 million. Software is a very high-margin business, but it would need to sell around a couple hundred million worth annually - at a minimum - to justify that value and any price appreciation. It's possible to be sure, though a definite challenge. (But hey - they're closer to that goal-line than a lot of other companies are.)
Considering FCCN is still closer to lows than highs and the effort is just getting started, we see some near-term upside here.
Bryan Murphy is a paid contributor of the SmallCap Network. Bryan Murphy's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
