Firefish Inc (OTCMKTS:FRFS) Takes Investors On A Wild Ride

Today, we need to talk about Firefish Inc (OTCMKTS:FRFS), which has been one of the most volatile stocks over the past few weeks.The share price of the company spiked on October 17, 2017 from below $0.01 to cross the $0.07 share price level.It happened in a very short period of time; just two sessions. After hitting record highs, the share price declined to $0.02.What happened?We believe that the market participants who made outstanding returns in the first spike decided to profit from the movement and pushed down the stock price. Company LogoHave a look at the share price movement: 1 month chart for FRFSYou should have remarked that something happened recently. On November 3, 2017, the share price spiked again from close to $0.02 to hit again the $0.07 share price level. Like it happened in October, many shares changed hands in a few sessions. The volume on November 3, 2017 was 20 million shares, which is quite astonishing. Additionally, like market participants saw in October, the company did not release news to justify the price spike.In this article, we will assess what may be going on and also note how the OTC Markets reacted to the volatility.Recent DevelopmentsAs the iHub Forum noted, GIFA Inc. seems to have bought FRFS. GIFA may be interested in becoming a public company and executing a reverse merger with FRFS.How could this transaction affect the share price of FRFS?If the merger is confirmed by the OTC Markets and we find a filing noting a change of control, the share price could increase much more than what has been seen by the market.Why?A merger with GIFA would provide FRFS new assets, new know-how as well as a new business model. The market tends to appreciate these types of corporate changes, as the potential for revenues increases and the credit risk diminishes once the company grows.What's the information that we have so far?The most interesting that we could find is the following certificate of amendment, wherein the names of GIFA and Firefish, Inc. could be seen together for the first time: Certificate of Amendment from iHubOn the top of it, we could read that the company has 160 million shares outstanding and insiders own 62% of the company. As it was noted by market participants in iHub, this would mean that the float is very low, which could explain the share price volatility.Additionally, very recently, scotlandyardnews.com published this article, wherein it was noted that Gifa Inc. was becoming public:

"Gifa Inc., which has recently entered into the US Stock Exchange, is undergoing exciting new developments starting with the construction of its new central building in Hamitkoy. 300 new personel will be employed as soon as the building is complete by the end of December." Source

Additionally, it was noted that the GIFA has a lot of plans for the year 2018.

"Kisa: We have huge plans for 2018. Since its official acceptance by the US Stock Exchange, Gifa Inc. has been working at a rapid pace on the construction of the new 4-storey building." Source

This is the photo that was included in the article: Source: scotlandyardnews.comThe article was published on 4 November, 2017 and the share price spiked one day before.“Buyer Beware” warning on OTC Markets Skull and BonesRegulators usually dislike companies in which the share price moves up and down violently. But, it is even worse if the company is not releasing information to justify the share price volatility. In such cases, there is a large probability of having market manipulation activities going on.What does the OTC Markets do when this happens?The OTC Markets usually uses a "Skull and Bones" symbol noting that buyers need to beware. This is what happened recently with FRFS. Have a look at its profile in the OTC Markets website.How may the market react to it?The "Skull and Bones" symbol is a bad note and the market tends to push down the share of companies signaled. That's why we believe that FRFS will have a hard time in November.What happens next?We believe that the company will need to contact the exchange and explain what's going on with its share price. After some time, the symbol may be removed. This process can be long, thus be very careful while dealing with the shares of the company.ConclusionCurrently trading with a market cap of $10 million, FRFS has shown quite a volatile stock market performance. Some market participants should have made interesting returns while others may be sitting on big losses. It happens all the time in Wall Street.We believe that the reaction of the OTC Markets will calm down the market, thus we encourage readers to stay on top of the latest developments.We will be updating our subscribers as soon as we know more. For the latest updates on FRFS, sign up below!Image courtesy of MeOktaviani via FlickrDisclosure: We have no position in FRFS and have not been compensated for this article.