Earth Science Tech Inc (OTCMKTS:ETST) Enjoys Some Attention
Penny Stock Titans, who, by the way, have been splashing out on internet ads lately, as well as some other promotional outfits decided that their next free pump will be Earth Science Tech Inc (OTCMKTS:ETST). A total of ten emails hit investors’ inboxes before the start of yesterday’s session and they all encouraged the recipients to give ETST a very good look.
Some people thought that listening to the emails is actually a really good idea. ETST opened a massive gap at the open at nearly $1.60 and a few minutes later, it was already flirting with the $2 per share mark. Sadly, it all went to pieces rather quickly. A wave of selling sent ETST spiraling down and it eventually closed the session at a breath under $0.99.
Not really the exciting end of the day everyone was hoping for, but we’re pretty sure that the more experienced investors aren’t particularly shocked by the rather dismal performance. They know that when the pumpers are involved, consistency is not to be expected.
Still, judging by Penny Stock Titans’ latest email, the free promotion seems to be over now. This leaves the people who put their money on the line in a very peculiar situation. On the one hand, they could try to avoid the drop in volumes which is almost bound to follow and sell now. On the other, they could do some due diligence and see if there’s something that could turn ETST into a good long-term investment. Let’s try the second option for them.
Last year, ETST became one of the many OTC companies that changed their business plans and started using the word “cannabis” in their press releases. Numerous hemp oil-based products were described in the announcements and we also heard some news about retail locations and online sales.
A quick look at the latest 10-Q would have you believe that ETST really is selling hemp oil to people all around the country. Here’s what the company managed to record at the end of Q2:
- cash: $181 thousand
- current assets: $537 thousand
- current liabilities: $132 thousand
- quarterly revenues: $82 thousand
- quarterly net loss: $406 thousand
Sure, the financials are not perfect, but the revenues do show that there are people who are interested in ETST‘s hemp oil products. Or are there?
Well, you can buy the products in question from the company website and while you’re at it, you can also see some pictures of Nutrition Empire – ETST‘s brick and mortar shop in Coral Gables, Florida. Yet, confusingly enough, the latest 10-Q says that revenues are coming from “consulting and marketing services”.
Hopefully, ETST‘s management team will manage to shed some more light on the way they are generating revenues in the future financial reports. In the meantime, you need to think about one more thing – the float. More specifically, how it came to be.
Fortunately for you, we covered that question in October 2014. Most of it saw the light of day a few years ago when some lucky investors bought a total of 3,580,000 shares at $0.01 apiece.
