MyEcheck Inc (OTCMKTS:MYEC) Fails To Move
Yesterday the stock of MyEcheck Inc (OTCMKTS:MYEC) failed to move upwards even by an inch and closed at exactly the same price as the previous session – $0.0156. The outcome was far from encouraging but at least the company is still holding on to the majority of the gains it made on Monday.
At first glance there is absolutely nothing that could explain the stock’s surge from the start of the week. The latest PR issued by MYEC is now more than two months old while the recently filed financial report is not exactly confidence-inspiring. It showed that at the end of June MYEC had:
• $22,850 cash
• $154 thousand total current assets
• $2.1 million total current liabilities
• $181 thousand revenues
• $1.6 million income
In addition to the minimal cash reserves the company has a working capital deficit of approximately $1.9 million and an accumulated deficit of $6.6 million. MYEC believes that its current resources won’t be enough to meet its needs even for the near future. This means that the company is in a dire need of new sources of funds. The share structure is equally as alarming. As of June 30 MYEC had nearly 4.1 BILLION outstanding shares. The total authorized amount is 4.9 billion.
Despite the serious red flags there is still hope left. On its Facebook profile MYEC has promised to issue several important PRs. The problem is that once again almost everything is suffering from delays. Their Apple iOS eMobile app was supposed to become available on Monday with a PR issued once the app hits the Itunes store. There is still no sign of the PR. Due to a confidentiality agreement the identity of MYEC’s bank customer in Africa can only be revealed after the bank launches the service publicly. This was supposed to take place on August 21 but was pushed back and is now expected to be done before the end of the month. According to its latest projections MYEC also expect the revenues to ramp up during the fourth quarter of the year.
Getting too excited may not be a good idea though. Even if the company finally publishes an official announcement about any of these events the risks surrounding their stock will remain significant. Use caution and commit to trades only after doing extensive research.
