Gediminas Jasionis
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Fireswirl Technologies Inc. (CVE:FSW) (PINK:FRWRF) Shows First Signs of Weakness in the Price Rally

by Gediminas Jasionis May 17, 2011
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FSW_chart.pngFireswirl Technologies Inc. (CVE:FSW) (PINK:FRWRF) had a massive stock price run-up when the company announced a collaboration agreement with Logitech, but the momentum is already starting to fade.

Share price rolled down 4.7% on Monday, still carrying a heavier than average trading volume of 1,8 million. The stock had run up on recent news, so the decline might be the first sign of upcoming reversal of this rally.

On May 12, 2011 the company announced an e-commerce agreement with Logitech to operate their official online store in China. The deal was made through a subsidiary of FSW - Beijing Xingchang Xinda Technology Development Co., Ltd.

Fireswirl_logo.jpgFSW stock clearly had rumors affecting the price prior to the official announcement. The shares added 120% over the last week before the first serious profit taking occurred yesterday. The details on the collaboration agreement were spared, though the management called it a "lucrative business opportunity".

Since the financial impact of the news remains unclear, the doubled market value of the stock seems out of place right now. The mention of a widely recognized name like Logitech in a press release is probably the key reason for the recent buying frenzy.

Fireswirl Technologies engage in the engineering of electronic and mobile commerce solutions which are used by content providers.

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