A Serious Correction for The Stock of Echo Automotive, Inc. (OTCMKTS:ECAU)
In the end of the past month the stock of Echo Automotive, Inc. (OTCMKTS:ECAU) started to go up after an optimistic press release with which the company informed the public that it has initiated its North American pre-sales of the EchoDriveTM fuel efficiency system.
The ticker was also touted on investor forums, which led to a firm upward run with high gains in price and daily increases in volume. After the stock gained 75% in just 3 sessions, however, it was time for the correction which, as we wrote in our previous article, was expected.
With the lack of news to back up the gains in value and the serious increase in traded stock, it was a matter of time for the correction to come. And just like we wrote in our previous article it came sooner than expected.
Yesterday, the stock of ECAU lost a hefty 22% in value as it slid from its opening price of $0.52 per share to close at $0.39, with even more traded shares than the previous sessions. With a total of 673 thousand shares switching hands it registered a 6 month high and managed to generate $288 thousand in dollar volume.
Today’s session started off better and by now ECAU has made a small gain of 2.56% in price. How will the day end, however. Considering that we don’t see any press releases from the company it’s pretty unpredictable.
One thing is for certain. ECAU remains a risky stock of a company that is yet to start generating revenues again, with over $1 million in net loss for Q2 of this year. In any case be sure to do a lot of due diligence and take a huge risk if you plan on investing in this particular ticker.
Among the other companies that were halted after a decent upward run were Pan Global Corp (OTCMKTS:PGLO) and TheDirectory.com, Inc. (OTCMKTS:SEEK) who lost 33% and 20% in value, respectively.
