Far East Wind Power Corp. (OTC:FEWP) Surges Up on No Letter of Intent
28 Oct 2010

Yesterday, Far East Wind Power Corp. (OTC:FEWP) stock jumped up as if the company has finally started one of its wind farm projects. Though, this is still far away from becoming a fact.

FEWP share price and trading volume spikes yesterday looked more than weird. It is true that the company filed its current financial report last Monday, but it is more than a week since then and the market should have had enough of time to consider if Far East can start any kind of a project with their $0 cash position at the end of this June.

Without any evident reason, not even the usual trading alerts on FEWP, its price surged 33.33% and closed the session at $0.25 on a trading volume of 647,000 shares. Strangely, not even the usual letter of intent was necessary to put the stock on the rise again almost four weeks after the last paid promotion worth $11,000.

The delayed FEWP financial report also does not give much reason for some delayed joy. It reveals that none of the proclaimed this year letters of intent to cooperate with various Chinese companies has been realized yet. Far East has six wind projects in China, four of which in the first stage of development, meaning that still no approvals or permits have been issued for the construction of a wind farm, two are in the second stage and have the development permit from the local government.

The permits are not really the big problem, but FEWP financial condition. The company has no cash and has only paid in advance some expenses amounting $8,000 in order to report any assets at all. The liabilities section of the balance sheet shows more life: more than half a million dollar debts have been accumulated. Of course, Far East has never had revenues as well, as apart from proclaiming letters of intend nothing else has been made to push the business forward.

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