FFN STOCK (AFF) Crashes to 1.47 a share + A Securities Class Action Lawsuit filed.

[will76]

Originally Posted by RawAlex

Not a good day or two over at FFN.

Stock crashed almost 17% today, back to flirting with penny stock status, closing at $1.02, down from $1.20.

Ouch.

FFN's financial are out, and they just don't look very good. Another quarter of losing over 10 million in 3 months.

S&P ratings dropped their debt from B- to CCC+, which is never a good sign:

http://www.reuters.com/article/2012/...sSector&rpc=43

"Cash sources include unrestricted cash of $23.4 million and expected
discretionary cash flow of more than $30 million in 2012. Cash uses are mainly
capital expenditures, with some modest investment in working capital. The
cash-pay notes mature in September 2013, and we believe that refinancing this
debt could prove difficult and costly. "

Basically, They may have about 18 months left before they hit the wall - and with declining topside revenues, 65% of their business on a single site (AFF) and subscriber churn near 22% a month, they are basically a high risk business.

This is perhaps one of the most impressive stories about FFN - it really shows where they stand, and it's certainly not in the Penthouse!