Firefish Inc (OTCMKTS:FRFS) Spikes Higher As Gifa Reveals New Plans

Firefish Inc (OTCMKTS:FRFS) has proved itself as one of the most successful picks in the last six months. Since we drew the attention of the market to this name in October, the stock has more than tripled its price as a result of the expected merger with GIFA Inc. Judging by the bull action in FRFS’s stock price, it’s right time to take a closer look at Sipp Industries Inc. Have a look:

1-year chart for FRFS

With the stock trading at the $0.09 handle, FRFS has recently retraced back in what appears to be a profit-taking movement. The stock should be able to make a push for the $0.10 mark on buyers who had missed out joining the rally on the initial run. On the downside, a close below $0.05 should worry the long side, but could also represent a great buy-the-dip opportunity. The most recent price action can be seen in the next 1-month chart:

1-month chart for FRFS

For starters, Firefish Inc. was incorporated in the State of Nevada on April 29, 2008. It is currently headquartered in New York. The company casts itself as a provider of educational services to young learners and young adults, along with mobile and internet marketing services to the retailers. In addition to the facilities in New York, operations are also run from an office in Mumbai, India.

The stock has been on the move since October, as many market participants figured out that FRFS is meant to head towards a reverse merger with Turkish company Gifa Inc. Past due diligence has revealed that Gifa seems to be a large entity with a building in Nicosia and 300 employees.

Gifa Inc and Firefish Inc. (OTCMKTS:FRFS)

On the top of it, public documents are showing that the International Securities Identification Number associated with the stock seems to be now "Gifa Inc." and the company is changing its name:

Certificate of Amendment Firefish Inc OTCMKTS:FRFS

Let's be very clear about this information. While we believe that the information could be correct, yet all the documents were shown by third parties in the iHub forum. By this, we mean that the company has not formally declared that there is a reverse merger in the works. Market participants are getting incredible returns on this play. But, they, of course, need to understand that they are playing on market rumors. They need to understand that this strategy does not always work:

Buy the Rumor Sell the News - Reach Messaging Holdings, Inc. OTCMKTS:RCMH

What's new?

The market seems to be celebrating the new information revealed about Gifa Inc. There are, first of all, new details about the owner of Gifa Inc., a self-made financier, who made millions in Europe in the profitable loan business. His name is Yusuf Kisa. He seems like a brilliant businessman. The following is the most inspiring part of the story.

"In Moscow alone in ten months his business grew to have a turnover of 25 million Euros an amazing feat. But it did not stop there for in France his second office enabled his overall business a gross turnover of 300 Million Euros. For many businessmen you would and they themselves would 'say' that is enough but not Yusuf Kısa all he had on his mind was further expansion. So he appointed managers in Moscow and France and decided to branch out even further. He took the decision to open two further offices the third office he opened was in a place called Elk in north-eastern Poland." Source

In addition, in February 2018, we also got information about its most recent business endeavors; offering loans from 50 million up to 4 billion euros to clients in Qatar, Jordan, Iran, and Dubai. Please have a look at the press release, and remark the following sentence. It shows that the optimism is high inside GIFA:

"GIFA Holding is expected to stun the finance market, exceeding last year’s figures with a target of 30 billion euros by the end of 2018." Source

There is more.

We also discovered that the Gifa plans to operate an amusement park in Nicosia, Cyprus, that is expected to provide fabulous returns. The 49-page-document about the financial planning of this project includes a lot of details, but we believe that the most interesting is the following part:

GIFALAND - FIREFISH ORD OTCMKTS: FRFS

Let's tell it this way; if those stock returns are correct and FRFS merges with GIFA, we should expect the company to be worth much more. The company is talking about a payback period of 3 years for equity shareholders and double-digit returns from the first year. These are dream results, which are very rare in the United States.

GIFALAND Park - Firefish Inc (OTCMKTS:FRFS)

Conclusion

With a market cap of $11 million, 278,690,822 shares outstanding and a float of 230,737,488, FRFS seems too good to be true. That should be the opinion of the OTC Markets Exchange, which reacted by labeling this name Caveat Emptor. We understand the intention of the regulator. In our opinion, this name is very tempting, but we should stay away from the shares until the bad note is removed and FRFS confirms the reverse merger. Buyer Beware!

Disclosure: We have no position in FRFS and have not been compensated for this article.

Image courtesy of Bernard Spragg. NZ via Flickr.