A classic pump and dump scheme. Hope the SEC is looking at this for market manipulation. Here is what SmallCap Network just reported:
"In the month since its initial public offering in May, FriendFinder Networks (NYSE: FFN) has lost more than half its value, following the downward trend of General Motors (NYSE: GM) and Winn Dixie (NASDAQ: WINN) and not the rebound upwards of Krispy Kreme (NYSE: KKD), Ford Motor (NYSE: F) or Xerox Corporation (NYSE: XRX).
Last week, the CEO of FriendFinder Networks went on CNBC, declaring that his company was growing faster and becoming larger than most social media, including Facebook. It was, however, later determined that the revenue of FriendFinder Neworks had fallen to $83.52 million for the first quarter of 2011, down from $86.205 for the first quarter of 2010.
This was not readily apparent initially as there was no comparison to previous earnings for the prior year on the press release. As a result, FriendFinder Networks rose quickly from about $4.80 early on June 7 to about $6.30 later that day with very strong volume. However, when research later revealed that "the shrinkage was in both service and in product revenues," the stock plunged to close out Friday at $4.63, very close to the year low of $4.50. Day traders who rode the wave up on June 7 and sold quickly did well. Those who shorted the stock did even better and have a more favorable long term postion as the earnings per share this year are a negative $2.808. Earnings growth per share this year is also in the red, at a negative 4.70 percent."