Eco Building Products, Inc. (OTCMKTS:ECOB) Surges After Filing, Gets Pump
The stock of Eco Building Products, Inc. (OTCMKTS:ECOB) was quietly simmering down in double-zero land after it slipped under one cent per share in November. The last three months pressed ECOB down to $0.001 per share but yesterday a frenzy of activity sent the price through the roof. ECOB closed 333% up, shifting 921 million shares – more than the cumulative volume for all of January.
This surge can be attributed to a filing that was published yesterday. ECOB chimed in with an 8-K informing it amended an agreement with Home Depot per which the chain will carry ECOB products in an extended number of stores and for an indefinite period of time, not for a 90-day period as per the original agreement. The filing itself appears to contain typographical errors, including the original agreement being dated Nov. 4, 2014, even though the scanned attachment is dated Nov. 4, 2013.
The company is also being currently targeted by a stock pumper outfit – Moving Pennies, who in their latest tout, arriving at yesterday’s market close, announced dropping Dewmar International BMC, Inc. (OTCMKTS:DEWM) and focusing on ECOB. The disclaimer states that Moving Pennies owns 500,000 ECOB shares that they may dump at any time. There seems to be little reason not to, considering the price has more than tripled.
ECOB‘s last financial report dates back to the quarter ended September 2013 and contains some underwhelming figures:
- $15 thousand in cash
- $18 million in current liabilities
- $403 thousand in quarterly revenues (down over 50% YoY)
- $1.8 million in quarterly net loss (improved from $4.8 million in Q3 of 2012)
The same quarterly report shows that ECOB is also swamped in convertible debt. What is more, the majority of that debt is toxic, converting at significant discounts from averaged trading prices.
Considering even the promoter who touts ECOB mentions that things may not play out too well and advises readers to ‘be careful’, traders may want to stop and think before they load on what they might perceive as ‘cheapies’. Doing your own due diligence should never be swapped for excitement, especially when you’re looking at a stock you need to chase.
