PFNO's intention to revert to the fully reporting status and the trade on the OTC Bulletin Board has raised serious trader interest in their stock as seen by trading volume, but what about the price? In a press release, the Management of ParaFin Corporation (OTC:PFNO, PFNO message board) announced that the company will become fully reporting and will apply to re-instate the shares of the company to be traded on the Bulletin Board. From the beginning of 2008 PFNO has been a non reporting company and the rules of SEC filings were not applicable to it and were not applied by the company. From 1982 to 2006 the shares of ParaFin Corporation were listed for trading on the Bulletin Board.
At present, PFNO's stock is traded on the Pink Sheets OTC Market.
An announcement for me was an opportunity to see how the company's shares were traded during the "before-reporting" period and how they are traded now. The chart on the left side, clearly shows one thing. During the "before-reporting" period PFNO's stock was traded at high prices. Today, the shares can be proud only of their volume, but not the price.
The decision of the Board of Directors of PFNO is admirable; since the company is in a development stage, that means a lots of money for investments, expenses and events. If the company is not a fully reporting entity and if you are investor, fascinated by company's development at present you will not see any audited financial statements or current report that can give you some independent and impartial information. Now good old "EDGAR" will do this for you.
It seems that the company has good ambition to apply for stock trading on the Bulletin Board and to bring investors' respect toward it. From a position of a potential investor, based only on unaudited financial reports of PFNO, I would say that filings are of high importance, but more important for the investors are the company's revenues, assets and liabilities. In the case of PFNO, the development phase of the company will be continuing for years and the only source of income for the previous year are PFNO's royalties and not company projects related to its hydrocarbon potential.
PFNO's intention to revert to the fully reporting status and the trade on the OTC Bulletin Board has raised serious trader interest in their stock as seen by trading volume, but what about the price? |