Ever since signing the letter of intent to acquire a De Xin Pharmacy, the revenues and share price of First China Pharmaceutical Group, Inc. (OTC: FCPG), a Chinese penny stock, have gone in opposite directions. There has been two incredible spikes on the share price of FCPG stock since it began trading in late 2010 after a 25-for-1 stock split. Considering revenues were exploding through 2011 numbers and the last spike came nearly one year ago today, the chances of seeing history repeat itself a good enough reason to have this atop the list of penny stocks to watch pre-market.
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FCPG Stock Quote
Market Cap: 8.65M
Last: 0.145 ▲ 0.015 (11.54%)
Dollar Volume: $16,946
Issued and Outstanding: 59,664,480
14-Day Rel Strength: 62.07%
14-Day Stochastic: 100.00%
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Like nearly every Chinese penny stock which has provided on-day gains of over 500% this year, First China Pharmaceutical Group is not a PR friendly Company. Over the last year, the only time the Company’s PR did not have details of upcoming financial results and guidance for the upcoming quarter was when James V. McTevia was appointed to the Company’s Board of Directors back in May, 2011.
The important PR issued by First China Pharmaceutical has always been timely and one-sided, highlighting growth.
With cash and cash equivalents of over $6 million as of September 30, 2012 to go with $23 million in current liabilities, Sales for First China Pharmaceuticals Group increased from $33.2 million for the nine months ended September 30, 2011 to $43.5 million for the nine months ended September 30, 2012, an increase of $10.3 million. The 31% growth in sales came mostly from the Company’s patented Chinese herbal medicine thanks much in part to the Company’s internet platform which allows existing customers to place additional orders more frequently.
However spectacular the growth in sales may be, the share price has performed similarly to the company’s debt – poorly.
Since it began trading in late 2010, shares of FCPG stock spiked almost immediately, rising from 0.80 to as high as $5.90 with volume exceeding 6 million shares during the run. Shortly afterwards, shares slid for nearly 14 months from just over $2.09 to as low as $0.13 before seeing a similar short-term spike in February, 2012.
Now that FCPG is trading at -64.63% below its 52 week high set one year ago last week, $0.41, the ripeness of a bounce is fresher than the newest herbal colon cleanser and ready to see some major activity. Traders should be on point to get in as low as possible before making their herbal kool aid.
About FCPG Stock
First China Pharmaceutical Group, Inc., through its acquisition of the assets of Kun Ming Xin Yuan Tang Pharmacies Co. Ltd., is focused on developing a high growth pharmaceutical distribution company generating significant revenue from the sale of healthcare products in China by using the internet.
Last 5 Trading Sessions:
Bottom Line: FCPG gained 61% last week, closed at the HOD on Friday, and is set for a hug volume spike today and required by any formidable penny stock trader looking for day trade action to be watched pre-market. With the likelihood of a week long run unlikely, FCPG stock should be avoided by novice traders who are unfamiliar with how to buy into huge momentum and be in cash before the middle f the threading session.
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