E-Waste Systems Inc (OTCMKTS:EWSI) Struggling to Stay Above $0.06
As we mentioned in some of our previous articles, E-Waste Systems Inc (OTCMKTS:EWSI)’s value was absolutely destroyed by the pumpers back in 2012. A couple of campaigns with lots of newsletters involved tried to convince investors that EWSI is about to become the leader in the global recycling industry and that the share price is about to explode. In fact, the ticker plummeted and in a matter of just a couple of months dropped from over $1 per share to less than $0.01.
As you might imagine, quite a lot of people lost colossal amounts of money during the pumps and this inevitably opened a massive hole in the company’s credibility. Lots of investors thought that EWSI is nothing more than a non-operating entity that will probably never start its business, let alone become a leader. The management team, however, set themselves the task of proving those skeptics wrong and, while we can’t say that EWSI is at the forefront of the revolution, we can definitely note that many things have changed over the last year and a half.
The really big highlight is the Q2 results that got published on August 19. As we noted in one of our previous articles, the 10-Q reported $2.7 million in revenues and while we still see a net loss and a negative working capital, they’re not too terrifying.
Predictably, investors responded, apparently forgetting about the appalling performance from 2012, and the price embarked on an impressive run. Within just three weeks, the ticker jumped from less than $0.02 to its 52-week high of $0.10 providing plentiful profit opportunities for the people who timed their trades right. Then, however, something went wrong and by mid-September, EWSI was back below the $0.04 per share mark. This time the drop was not caused by a paid promotion, but it still managed to put a chink in the company’s armor.
Over the last few days we have been witnessing some more shuffling. EWSI registered three consecutive green sessions which enabled it to touch the $0.06 per share mark but it would appear that these sort of values once again proved to be too high for the stock. Yesterday it lost around 10% while shifting more than 5.9 million shares. But what is causing the chaotic movement this time?
Well, we received a couple of no-compensation emails at the beginning of the month and they probably had some effect. In addition to this, Small Cap Specialists LLC have jumped in with their so-called research reports which consist of nothing more than a summary of the company’s latest press releases. Couple that with the torrent of optimistic developments that EWSI have been announcing recently and you’ll see that the excitement is getting a bit too much.
Some of the traders probably noticed the dismal performance from days gone by and decided to take the profits and run while they still can. All in all, the factors that might have pushed the price down during yesterday’s session could be many and we’ll probably never know the exact reason for the drop.
One thing is for sure – the 10-Q covering the third quarter of 2013 should give us a better understanding of where EWSI is going next. The CEO recently published a letter to the shareholders saying that everything is going according to plan. The announcement of a new agreement that should bring in total revenues of around $3 million for 2013 also sounds good, but with a ticker behavior as erratic as the one displayed by EWSI, being cautious and waiting for solid evidence of the company’s progress might not be such a bad thing.
Another penny stock that went through a terrible session yesterday is TNI Biotech Inc (OTCMKTS:TNIB) who wiped out nearly a fifth of their value despite being featured in a specialized online magazine dealing with small cap companies. Pan Global Corp (OTCMKTS:PGLO), on the other hand, continued their pump-induced run adding another 10% and finishing the day at $0.453 per share.