Eco-Shift Power Corp. (OTCBB:ECOP) Crashes After Another Round Of Email Pumps
We last wrote about the stock of Eco-Shift Power Corp. (OTCBB:ECOP) at the end of May and back then the company was still flying higher than ever. In a little more than a month it managed to run from 45 cents to a new 52-week high of $0.92. Unfortunately this impressive performance was only possible thanks to the ongoing pump campaign.
A couple of email alerts were sent on May 22 but the biggest impact on the movement of the stock had the hard mailer that was put into circulation a few days later. As we said the artificial hype managed to boost the stock initially but as all pumped stocks ECOP soon started crashing and it crashed hard. In just six sessions it wiped around 40% of its price and returned to 55 cents per share.
We thought that such a devastating slide had put an end to the promotion and for the past weeks the pumpers indeed have been silent. This week though they returned and as a result yesterday ECOP dropped 7.5% lower and closed the session at $0.49.
The newsletters involved in this latest pump effort were Stock Publisher and Penny Stock Crew who bagged $50 thousand and David Cohen and his Research Driven Investor who received $30 thousand as compensation for their services. The exact same group on Sunday touted the stock of Integrated Cannabis Solutions, Inc. (OTCMKTS:IGPK). On Monday IGPK crashed by more than 13% and closed at $0.105. After ECOP‘s equally as disappointing performance David Cohen and his affiliates decided to move on to their next pick – Axxess Pharma Inc (OTCMKTS:AXXE).
Even on its own ECOP have enough red flags that demand the use of caution. The company finished the latest quarter with:
• cash: $25 thousand
• current assets: $458 thousand
• current liabilities: $1.7 million
• quarterly revenue: $327 thousand
• quarterly net loss: $260 thousand
• current liabilities: $1.7 million
• quarterly revenue: $327 thousand
• quarterly net loss: $260 thousand
They are trying to improve their limited cash position through the sale of up to $7 million worth of common stock which should result in a considerable dilution. This has been a continuous problem for the company forcing them to make three reverse splits in just the past four years. The latest one was performed at the end of November, 2013 and brought the number of outstanding shares to just 8 million. A couple of months later that number has already reached 56 million. Any investment involving the stock of ECOP should be attempted only after deliberate and thorough due diligence. Even after the recent correction the company still commands a market cap of $27 million and further drops to even lower price levels are certainly not out of the question
