Eco-Shift Power Corp (OTCBB:ECOP) Gets a Hard Mailer Pump
We last wrote about Eco-Shift Power Corp (OTCBB:ECOP) a month ago. Back then, the ticker had made a 16% jump and it was sitting at $0.56 per share. Needless to say, we were wondering if it’s able to hang on to those levels.
Now, twenty-nine days down the line, things don’t seem too bad. After our article went online, ECOP continued climbing the charts and although the volumes were nothing to shout about, the $0.60, $0.70, and $0.80 barriers were dealt with with ease. On Friday, the ticker slipped and lost around 9%, but even so, some things (like today’s press release about the launch of the new state-of-the-art LED Flat Panel Fixture) suggest that it could recover and go even further up.
There are some other positive news as well. The press releases issued over the last month all sound exciting and even the latest 10-Q (which covers the first quarter of 2014) shows that, at least in some aspects, the company is progressing along. Here’s a summary of the most important figures:
- cash: $25 thousand
- current assets: $458 thousand
- current liabilities: $1.7 million
- quarterly revenue: $327 thousand
- quarterly net loss: $260 thousand
The lack of significant cash resources and the rather huge working capital deficit are obvious, but we can’t ignore the 25% year over year jump in the revenues section and the improved profit margin.
All in all, if ECOP continue working hard on getting their business plan going, they might just be able to bring some value to their shareholders. Sounds like a straight-forward, consider-all-the-risks-and-hope-for-promising-results kind of investment. And it is… if you don’t mind the huge pump campaign.
It began on Friday when Investor Soup and the rest of the newsletters owned by Sherwood Ventures LLC started sending in their emails about ECOP. Sherwood received $30 thousand for their efforts and in case you’re wondering, these are the same people that pumped Definitive Mattress Company f/k/a Crescent Hill Capital Corp (OTCMKTS:DRMC) about a month ago. With their help, DRMC managed to reach an all-time high of $0.52 per share, but currently, it’s struggling to stay above $0.04.
DRMC‘s chart is probably enough of a reason for some of the people to stay away from ECOP, but those who are still not deterred should bear in mind that the emails aren’t the only pumping vehicle. Rumors were heard last week about glossy brochures dedicated to ECOP and some Twitter users have now decided to post photographic proof of their existence. Unfortunately, there are no pictures of the disclaimer, but some people are saying that the budget amounts to $1.3 million.
The brochure, it seems, has been put together by Wall Street Revelator and their editor, Andy Carpenter. The same outfit was responsible for the promotional campaigns on two stocks that later got suspended by the SEC – Life Stem Genetics Inc (OTCMKTS:LIFS) and Imogo Mobile Technologies Corp (OTCMKTS:IMTC). The latest hard mailer pump performed by Andy Carpenter, the one for Fresh Healthy Vending International Inc (OTCBB:VEND), didn’t end in a suspension, but it didn’t do too well either. The hype and excitement propelled VEND to a height of $10 per share on February 25, but right now, less than four months later, it’s sitting at $2.63.
The SEC has been keeping a close eye on the promotional world recently and, as a result, a lot of pumped companies have now been relegated to what is commonly referred to as “the graveyard for penny stocks” – the Grey Market. The huge hard mailer campaign for ECOP might deter some investors away, but even if you decide that playing the pump is worth the risk, treading carefully is definitely a good call.