On Friday, small cap stocks Foodfest International 2000 Inc (OTCMKTS: FDFT), Maxam Gold Corp (OTCMKTS: MXAM) and Rjd Green Inc (OTCBB: RJDG) surged 128.6%, 100% and 33%, respectively. However, it should be mentioned that all three have been the subject of paid promotions lately. And while there is nothing wrong with properly disclosed promotions, they can backfire on unwary investors and traders alike. With that in mind, here is a closer look at all three small cap stocks and where they might be heading this week:
Foodfest International 2000 Inc (OTCMKTS: FDFT)Surged 128.6%
Small cap Foodfest International 2000 recently acquired Restore Force, Inc. which serves Palm Beach County, Florida, with its damage restoration services, including water damage restoration, mold remediation and fire damage restoration. In addition, Restore Force provides re-construction services following its initial restoration efforts. On Friday, Foodfest International 2000 surged 128.6% to $0.0016 for a market cap of $643,597 plus FDFT is down 96.8% over the past year according to Yahoo Finance.
What’s the Catch With Foodfest International 2000 Inc? According to various disclosures, transactions of $4.5k, $5k and $20k have or will occur to mention Foodfest International 2000 in various investment newsletters. Back in the middle of August, Foodfest International 2000 announced that its Jupiter, Florida-based Restore Force, Inc., would be represented at early September's The Experience™ Convention and Trade Show, a leading cleaning and restoration services industry convention. The company also announced that beginning in the fourth quarter, it would turn its attention to finalizing a growth-through-acquisition strategy. Nevertheless, investors should be aware that Foodfest International 2000 only completed its acquisition of Restore Force in August and and this acquisition was done with FDFT stock – meaning there is no point in look at the company’s financials which only go up to the end of June.
Maxam Gold Corp (OTCMKTS: MXAM) Surged 100%
Small cap Maxam Gold Corp is a gold mining and development company with its main focus on mining concessions in Nicaragua that was formed in 1975 and has been involved in the mining and exploration of gold since 1985. On Friday, Maxam Gold Corp surged 100% to $0.0002 for a market cap of $9.11k plus MXAM is down 94.3% over the past year and down 95% over the past five years according to Google Finance.
What’s the Catch With Maxam Gold Corp? According to various disclosures, transactions of $500, $2k and $4k have or will occur to mention Maxam Gold Corp in various investment newsletters. Last Wednesday, Maxam Gold Corp announced it had engaged approximately 50 Artisanal miners in the Colon province of eastern Honduras, to explore and perform test production from potential alluvial gold deposits. Otherwise, a Maxam Gold Corp has been fairly quiet since early May when a press release announced that through its partner, Comanche Capital, the company has secured a source from which to acquire discounted gold in Honduras. The press release sated that Maxam Gold Corp along with Comanche Capital intended to start a gold buying program at 1 kilogram per week, with a projected profit margin of 30% that would increase to 10 kilograms per week, with “potential gross revenues of over $2 million per month.” A quick look at Maxam Gold Corp’s financials reveals no revenues for the two quarters reported this year (and not much financial data for the quarters before that); net losses of $18k (most recent reported quarter) and $26k; and no cash to cover $1,492k in current liabilities at the end of June. So perhaps investors might want to wait for more news and more financials from Maxam Gold Corp
Rjd Green Inc (OTCBB: RJDG) Surged 33%
Small cap Rjd Green is a development company focused in green services and products. On Friday, Rjd Green surged 33% to $0.04 for a market cap of $16.98 million with not to much historical data available.
What’s the Catch With Rjd Green Inc? According to various disclosures, transactions of $1.5k, $2k, $4k, $5k and $6.5k have or will occur to mention Rjd Green in various investment newsletters. Rjd Green has been quiet since last June when it was the subject of heavy promotions and issued a press release about the business model of its newly acquired Silex Holdings Inc. and how it fits into the company’s focus on green services and products. The company has three divisions (energy, environmental services and interiors as in specialty building materials) and the goal is to create an “attractive net profit derived from $30,000,000 in Revenues per year, or greater, over the next three year period.” Nevertheless, a quick look at RJD Green’s financials reveals revenues of just $1k (most recent reported quarter), $1k, zero and zero for the past four quarters along with net losses of $14k (most recent reported quarter), $3k, $4k and $1k. At the end of May, Rjd Green had $1k in cash to cover no current or long term liabilities. This means that Rjd Green intends to go from $1k in revenues to $30 million in just three years – a rather tall order.