August 30, 2010 PSW Staff |
announcing that a federal court threw out a civil lawsuit against the company accusing them of being a racketeer influenced corrupt organization. Then today, Monday August 30, the stock climbed another 100% when they announced a lawsuit of their own against the law firms bringing the original civil suit. Volume was not overly intense, although it was for this particular stock. The issue did around 400 trades on Friday and around 800 today making it the second most heavily traded OTC BB issue. The stock symbol currently has an “E” behind it because they have failed to file their most recent quarterly report with the SEC on time, and are essentially on probation. They did file the NT 10Q report on August 16, giving them a five day extension that has already come and gone. They now have around 20 days left to file before being demoted to the Pink Sheets. U.S District Court Judge George H. King dismissed the civil RICO suit determining that there was no valid basis to file the suit. The company's CEO and co-founder is excited to move on with business as usual. “The Federal Court decision today means that the cloud under which we have unjustifiably been forced to operate over the last nine months has been lifted.” They wasted no time filing a $500 million dollar defamation and malicious prosecution suit, however, one that could just as easily be thrown out as frivolous itself. They may not have a whole lot of choice, however, being a development stage company with a limited amount of cash on hand to pay lawyers. In fact, the most recent 10Q filed from May does not include any significant legal fees paid. GetFugu's product is already being downloaded in beta versions, and it is definitely cutting edge. Essentially, the product is an App available on most mobile phones allowing the user to say the name of a product, and easy access to that products promotional efforts will ensue. The service also allows users to take a picture of a products name or logo and get in that way. Additionally, the service links by way of GPS to allow access to that product close by. This is all part of their “See it, Say it, Get it” tag line, and their homepage sports an impressive list of advertisers. As exciting as the product is, however, the stock has a couple of problems in it's current form. With half a billion shares issued and outstanding and more to come reported all the way back in May, saying that this stock has a dilution issue would be a bit of an understatement. Basically, the company would have to earn more than $100 million dollars a year for the stock to represent any value over 10 cents a share, or make some significant changes to the share structure. Although extremely unlikely, any settlement in their defamation case would certainly help the situation. |
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