The Pump for Eco-Tek Group, Inc. (OTCMKTS:ETEK) Meets its End
After we receiving more than 70 emailsfor a whole week of touting Eco-Tek Group, Inc. (OTCMKTS:ETEK) from almost every active newsletter, it seems that they have finally given up. A positive result was achieved only on the first day of touting followed by three consecutive days of corrections. When the stock opened on Friday it was sitting full 25% below the start price of the promotion.
The last stragglers that remained with the stock were the affiliates of Damn Good Penny Picks and Actual Investments. Penny Picks and Penny Stock Newsletters were compensated with $25 000 while Honest Abe and Actual Gains bagged the way more modest $4500.
ETEK also burst into activity releasing 5 distinct PR articles since the start of the promotion with the latest one coming out today just an hour before trading started. Apparently ETEK have sold their first 5 Bypass systems in Peru. On its own the sale may be negligible but in reality is a rather encouraging result having in mind that the company announced its distributor for the country at the start of last week.
If you are wondering why despite the $450 thousand set aside to fund the promotion and the flurry of news brought on such miserable results just take a look at ETEK‘s latest quarterly report:
- $8956 cash
- $71 thousand total current assets
- $1.1 million total current liabilities
- $53 thousand revenue
- $189 thousand net loss
And as if these results weren’t grim enough the company has some of the classic aspects of a pump scheme – millions of shares sold to seed shareholders for just $0.0007 after the customary forward split, in this case 28 for 1. Not to mention the numerous convertible notes ETEK has issued throughout its business history that when fully converted will amount to 680 million shares bought for an even cheaper price -$0.000375.
While ETEK managed to stop its plummet on Friday and close at $0.23, exactly the same as the previous close, today they dropped straight down losing 16% from the get go.
Even experienced traders should tread carefully when playing pumped stocks. Doing your own due diligence and accounting for the inherent volatility of pennystocks may save you considerable headaches if things turn sour.
TheDirectory.com, Inc. (OTCMKTS:SEEK) had a completely identical performance right before the weekend. The pumped stock was headed right for the clouds for most of the week but on Friday it slumped and fell to its previous close posting 0% change in price. The club of 0% gainers is also joined by the stock of Premier Brands, Inc. f/k/a Tracksoft Systems Inc (OTCMKTS:BRND) who rose to prominence thanks to the name of NBA superstar Dennis Rodman.