Eco Depot, Inc. (OTCMKTS:ECDP) Rising On Paid Promotion
Eco Depot, Inc. (OTCMKTS:ECDP)’s stock began attracting investor interest in the end of January, as it wasn’t really traded before that, priced at $0.02 per share. The total gain that the company has accumulated to this moment comes at 500%, even though there were some sessions in the red.
We also saw a major paid promotional campaign on which there have been spent more than $139 thousand by now, paid by Bas 1, LLC. The compensations were ranging from $7 thousand to $65 thousand with Pennystock Tweets bagging the biggest.
Still, the company stock didn’t manage to attract much investor interest until yesterday, when it went up 22% and closed the session with a price of $0.12 on its highest volume so far. We saw some 2.2 million traded shares, that managed to generate $296 thousand in dollar volume.
The company also issued a press release yesterday, touting the DRTV infomercial campaign for their WaterGizziTM portable water purification device. Nonetheless, their claims of “most popular Water Filtration products during the past 90 days” aren’t backed up by their financial statement.
This is because we should have at least seen some revenues in their annual report for the period ended December 31, 2013 if they have a “most popular” product.
- cash: $500
- total assets: $105 thousand
- liabilities: $279 thousand
- revenue: $0
- net loss: $74 thousand
This doesn’t seem like a company that has any popular products in the past 90 days and we are quite sure that the claim on their website is even older and refers to a period further away in the past. Furthermore, the current market cap of $5.8 million that ECDP has isn’t really backed up by the company’s financials.
This means that there is a possibility for a serious correction, once the paid promotion is over. In any case, be sure to do your due diligence and weigh out the risks.
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