Echo Automotive, Inc. fka Canterbury Res Inc (OTC:ECAU) Drops Like a Rock

08ECAU_chart.pngEcho Automotive, Inc. f.k.a. Canterbury Res Inc (OTC:ECAU) took a 20.67% dive in yesterday’s session. This drop erased the gains made over the previous three days and took the price down to $1.65 per share.

The plunge happened despite the announcement of the addition of a member to the Advisory Board and an in-house General Counsel. Alternatively, it could have been a case of selling on the news.

The addition to the Advisory Board is Dale Jensen. Mr. Jensen has an impressive entrepreneurial history, but his position on the Board is no guarantee of success for ECAU. The promotional activities around ECAU will continue to cast a shadow of doubt.

25STEV.pngHigh volume selling during the session took the price to a low of $1.45 but the pressure was absorbed to reach the close 20 cents higher. This doesn’t mean ECAU won’t share the fate of Stevia First Corp (PINK:STVF) and Stevia Corp (PINK:STEV).

Positive press releases about the hypothetical potential of a company can sustain inflated price levels for a time. However, that time is limited, and if the company in question fails to deliver significant results, the market will correct the inadequate valuation.

The lack of filed documents after Dec. 18 may also be viewed as a troubling sign. ECAU is in a precarious position. Creating so much hype results in expectations, and the failure to live up to those expectations is what drove STEV and STVF to where they are today.

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