E-Waste Systems Inc (OTCMKTS:EWSI) Clawing its Way Up
We last wrote about E-Waste Systems Inc (OTCMKTS:EWSI) less than two weeks ago, but despite the short time frame and the relatively small trading volumes during this period, we can definitely say that quite a lot of things have happened around the company.
In terms of stock movement, there were both ups (when the ticker managed to touch $0.07 per share on November 5) and downs (when it crashed by nearly 13% a day later). EWSI is on the rise once again and after six and a half hours of intense trading yesterday, it managed to gain 9.66% closing the session at $0.0647 and racking up a dollar volume of more than $282 thousand.
It’s not hard to see that while there are a few corrections here and there, the general direction is towards the higher end of the charts and we can safely say that there is a reason for this. More specifically, a couple of reasons.
First, on November 1, a third party called Fort Holdings, Ltd. paid Information Solutions Group, LLC. $7,500 to send out an email alert touting EWSI. Then, on November 4, Blue Horseshoe Stocks also jumped in, although, according to the disclaimer, they sent out their email for free.
More important than the pumpers’ efforts, however, is the press release that came out on November 5. The announcement is absent from EWSI‘s Yahoo! Finance profile which is somewhat odd considering the fact that this is one of the primary sources for this sort of information. Still, it’s available on the company website as well as other informational portals and it says that the third quarter of 2013 has been a resounding success.
Apparently, during the period between June and September, EWSI have registered more than $4.5 million in revenues which represents a 60% increase quarter-over-quarter. They expect the period between September and December to be even more positive with projected revenues of over $6 million which should bring the combined annual figure for 2013 to over $12 million.
When you have in mind how horrific the company’s situation was back in December 2012, you’ll see that these sort of figures are quite astonishing. The only thing left at the moment is to see if they will indeed coincide with reality.
The Q3 report should be out really soon and should give us the full picture. The management team claims in November 5’s press release that the revenues have grown by quite a bit, but they say absolutely nothing about the balance sheet and the bottom line. As we mentioned in our previous coverage, EWSI‘s latest 10-Q doesn’t look as bad as what we’re used to seeing from penny stocks, but it’s still by no means perfect.
The company had a working capital deficit of more than $1.2 million as well as a quarterly net loss of $146 thousand back in June. Will the increased revenues manage to offset the expenses and bring a positive bottom line? We’ll need to wait for a couple of more days to find out, but one thing is certain – if investors are disappointed with the Q3 results, the share price will take a plunge.
Other companies that shifted quite a lot of shares during yesterday’s session include Global Earth Energy Inc (OTCMKTS:GLER) whose stock lost more than 50% of its value in just four incredibly disappointing days of trading and Life Stem Genetics Inc (OTCBB:LIFS) who are still inching up the chart fueled by nothing more than promising press releases and a $1.8 million promotional campaign.