Wednesday, November 23, 2011

First Liberty Power (FLPC) Is Powerless To Earn Money

Oh boy, here's another great story from my newsletter mailbag.  Please note that I mean "great" in a sarcastic sense.  First Liberty Power (FLPC) explores for lithium and other minerals.  Eric Dickson of Breakaway Stocks and Trinity Investment Research once sent out a twelve-page mailer (probably some time in 2010) saying this stock was a bargain at $0.80/share because it was poised for explosive growth.  Folks, the stock hasn't seen that price since June 2010 and it has been on a steady slide down ever since.  It now trades in the single digit pennies.

Read Item 7, MD&A, from their 10-K dated November 2011.  The company has had zero revenue since inception in 2007.  Their accountants raised substantial doubt about the company's ability to continue as a going concern.  The company's management team admits that it has no arrangements in place to raise financing in the future. 

I find it amazing that the company's website contains no mention whatsoever of the management team at this time.  That just blows my mind.  I have no idea why a mining company has a name like "Power," which makes it sound like an energy company to me.  I don't think I need to go any farther.  I really hope the boys at Trinity Investment Research have a nice day.  They will need it after throwing their corporate name behind this stock.

Full disclosure:  No position in FLPC, ever.