While most custo plays have found someone to fall in love with and merge, FCGD is one of the few remaining custos with an upcoming and confirmed merger. Why is that important? Historically mergers have catapulted stocks up from as low as 100% and all the way up to 500% in a single day. First Colombia Gold Corp. (OTC:FCGD) currently holds no operations, and is seeking a merger or rollup of revenue producing businesses in the following months. The news of an imminent merger is making it one of the most appealing small stocks to buy.
On June 8th, Frank Igwealor – a trailblazing CEO on the OTC market – took custodianship of FCGD via Alpharidge Capital, LLC. FCGD is an energy sector exploration and production company that holds interests in 96 oil wells as well as mineral exploration businesses. However the company was only in operation briefly before becoming defunct in 2017.
Frank Ingwealor took custodianship of this shell and thanks to his track record of successful custo plays, bullish investors are confident that FCGD will follow the same path under the direction of Ingwealor.
As per its quarterly report, the company has no operations and is actively seeking a merger or rollup of revenue producing businesses in the following months. According to its attorney letter, FCGD meets the criteria of a clean shell and has a net operating loss of $76 million which makes the company attractive to potential merger candidates. A reverse merger is currently planned for the end of 2021 but the operating company and terms have not been determined.
FCGD has a market cap around $22 million with 10 billion authorized shares and a float near 7.4 billion. FCGD has become pink current already and is one of the stocks to watch as its gears up for a potential merger. Alpharidge Capital shared at the start of September that it was beginning the process of share cancellation for FCGD and others as they became pink current but has not provided an update on the reduction since. Still, shareholders are waiting for news regarding the potential merger and share reduction which could make FCGD one of the small stocks to buy before news drives up its PPS.
Investors like @greatstockpicks have been eyeing FCGD for quite some time…
On the other hand, FCGD has been witnessing an upward trend in the past week, currently trading at its highest point in years of $0.0024. The stock has a support line at $0.0017, and a stronger one at $0.0014. The accumulation is rising, along with the RSI currently standing at 70.98. The MACD has recently witnessed a bullish crossover on September 27th, with no signs of a reversal soon.
Should You Buy?
Now that the SEC’s September 28th deadline has arrived, investors are looking to redirect their investments into pink current companies with upcoming catalysts. The new volume may help FCGD as more investors notice the shell’s potential for a successful merger before EOY. Known for turning OTC listed companies around for huge profits, Ingwealor will likely update shareholders as to FCGD’s status soon. In the last two weeks FCGD has witnessed a 100% increase in value and could have further gains ahead of it. Trading at $.0024, FCGD is already at its 52-week high point and has nothing but sky ahead as its share reduction and merger process play out.
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