E-Waste Systems, Inc. (OTCMKTS:EWSI) Revs Up for a Run
E-Waste Systems, Inc. (OTCMKTS:EWSI) attracted attention in the past days with unusually high buying volumes, following the latest round of financial results. EWSI added another 18% on Friday, closing at $0.026. Dollar volumes, though low compared to more active OTC tickers, are unusually robust for EWSI at $336,000. 
EWSI attracts attention for being a rather robust climber outside the still hot legal marijuana sector. Still, the latest upward trend only came at the bottom of a long slide. EWSI, with its e-waste strategy, also holds more long-term potential, and the low volumes speak of generally subdued trading activity in the shorter term. 
The latest financial filing reveals:
- $4.7 million annual net loss for 2013
- $286,000 cash, an increase from zero cash in 2012
- $1.15 million total assets, built up in 2013
- $3.6 million total current liabilities
It looks like EWSI jump-started its activity, though it did so through debt. Still, EWSI has some revenues in a business with a great potential as a stable source of income. And like all companies with long-term potential, the stock price of EWSI has been practically flat, with only short-term hills during periods of email campaigns or more active PR. Otherwise, EWSI is chugging along, with stable volumes, but little growth, testing the patience of investors as they expect a breakthrough.
EWSI itself makes claims to serious international contracts for recycling, so investors see it as undervalued, with a market cap a bit above $8 million, and a rather low 345 million share count. The only worrying thing is the publicity, which may boost the stock price way beyond the natural levels, and burn the investments of enthusiastic buyers.
Now, EWSI is expected to post results for the first quarter of 2014, and leading up to the announcement, the stock price may find more support. Still, there are opinions that EWSI would disappoint and return to lower levels.
The other setback for EWSI is the lawsuit for breech of contract, filed by a smaller recycling company that EWSI bought a while back. Fortunately, the size of the claim is just $800,000, but the bad publicity created some doubts on investors’ forums.
For EWSI, the major problems remain the relatively low trading volume, as investors seek climbing trends elsewhere. Also, it is not unusual even for high-quality companies to hold a very subdued stock price. Due to its diluted stock structure, Bebida Beverage, Inc. (OTCMKTS:BBDA) can hardly leave the double-zero positions, and is back down at $0.0011. Others, like Kona Red, Inc. (OTCBB:KRED) hold a higher price, but also fall prey to fluctuations. KRED reached a recent peak at $1.25, only to slide back toward $0.65, after some recovery.
If you choose EWSI as an alternative to the hot cannabis sector, keep in mind that this stock could keep testing the patience of investors, so adjust your time frame accordingly.
