eCrypt Technologies, Inc. (OTCBB:ECRY) Recovers For No Apparent Reason

[[tagnumber 0]][[tagnumber 1]]Paid promotions are not as common as they were last year, especially the big ones. This is why we consider the $5.1 million pump campaign for eCrypt Technologies, Inc. (OTCBB:ECRY) something rather uncommon nowadays.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Of course, this is because the regulatory organs “woke up” in the second half of 2013 and started to suspend many promoted stocks or at least take action in warning the company management about the promotion. After the officers of [[tagnumber 6]]ECRY[[tagnumber 7]] were contacted by the British Columbia Securities Commission they quickly issued a press release saying that they had nothing to do with the promotion, but were aware of it.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The ticker quickly suffered the consequences of the press release and it seemed like the promotional emails had stopped coming in. Mike Statler the co–editor of Stock Tips said that he was still supporting the company stock and that his readers which he affectionately calls his “[[tagnumber 12]]boys and girls[[tagnumber 13]]” should check their spam folder because he was sending email alerts all the time.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The ticker recorded several sessions in the green afterwards and it seemed like it was going to reach for the $0.50 per share mark when it closed with a price of $0.447 last Wednesday. Unfortunately, Thursday’s session wasn’t very kind to [[tagnumber 6]]ECRY’s[[tagnumber 7]] stock as it dropped 12.08%, while it was apparent that a lot of people got cold feet by looking at the second half of the intraday chart.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Still, it is good to remind ourselves that the current market cap of $64 million that [[tagnumber 6]]ECRY[[tagnumber 7]] is holding barely reflects the financial state of the company. Here is a quick recap of the numbers of prime interest contained in the company’s balance sheet for the third quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 29]] [[tagnumber 30]]cash and total current assets: $26 thousand[[tagnumber 31]] [[tagnumber 30]]total assets: $31 thousand[[tagnumber 31]] [[tagnumber 30]]current liabilities: $1.85 million[[tagnumber 31]] [[tagnumber 30]]revenues: $0[[tagnumber 31]] [[tagnumber 30]]net loss: $164 thousand[[tagnumber 31]] [[tagnumber 40]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]And despite these numbers, the fact that the company is being the target of one of the biggest paid promotions recently, despite that there aren’t any substantial development news [[tagnumber 6]]ECRY[[tagnumber 7]] still started this week on a good foot for no apparent reason after the last email coming from Mr. Statler flew in our inbox Friday afternoon.[[tagnumber 46]][[tagnumber 47]][[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Yesterday, the ticker added 18.82% to its value and closed at a price of $0.505. The total amount of shares that switched their owners was also significant and managed to generate some $2.5 million in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Considering the paid pump, the weak fundamentals and the bloated market cap that [[tagnumber 6]]ECRY[[tagnumber 7]] has at this point, however, we might very soon see a serious and more–permanent correction. This is the exact reason for which you shouldn’t skip doing your due diligence and weighing out the risks before putting any money on the line.[[tagnumber 2]]