Noticeably Flamingo AI (FGO) (formerly Cretek8) dropped 9.3% to 3.9c today in a lacklustre day that saw a second half day recovery in sp amongst junior tech stocks. Since mid Dec, FGO share base leapt 22% from 912m shares to 1.111 billion shares, with mkt cap dropping from $63m in mid-Dec to $43m now. FGO is yet to make any revenues but its expenses have been kept in check compared to last year. So strangely the sp dropped today despite a good announcement of its achievement in security compliance. From its high of 9c in early Nov, FGO has suffered a substantial 57% since then.
But has anything changed? No, in fact they even had a positive news on its major customer Liberty Mutual going live. So people often asked why sp drops went nothing seemingly changed? I think the answer is that either (1) substantial expectations were built into the sp rise during the exuberant period in second half last year for anything to do with AI and blockchain or / and (2) someone is unloading blocks of shares. Until and unless it can start registering revenues, more CR can be expected to further dilute holders and increase its bloated share base.
I bought FGO at 6.6c but bailed out shortly at 7.2c as I felt it would take a lot longer in its business model to register the sort of revenues that can substantiate its market cap.
