Eco Depot Inc (OTCMKTS:ECDP) Soars for All the Wrong Reasons
Is there anything that could even remotely suggest that Eco Depot Inc (OTCMKTS:ECDP) is a viable investment opportunity? This is the question we’re going to answer in the next few paragraphs. Straight away, we can point out that there are more daunting tasks out there.
Things start to look shady from the very moment you open the company’s profile on the OTC Markets and look at the address of ECDP‘s headquarters. Thanks to the magic of Google Maps, you’re just a couple of clicks away from seeing that it’s actually a residential house.
Google is also helpful when it comes to researching the background of the people in charge of ECDP. Once again, mere minutes worth of due diligence reveal that James Scheltema, the company CEO is also at the helm of Greenscape Laboratories Inc (OTCMKTS:MJLB), and he’s the legal council of Revenge Designs Inc (OTCMKTS:RVGD). Both of these companies have issued some pretty bombastic press releases in the past, but neither of them seems to be in a hurry to take Wall Street by storm.
Speaking of press releases, ECDP has also issued some positive announcements over the years. Unfortunately, once you check out the financial reports, you’ll see that they haven’t really had any effect on the company’s strength.
Here’s where doing research on ECDP requires a bit more effort. The company uses OTC’s alternative reporting standards and the management team have decided to upload their statements as unsearchable PDF files. Nevertheless, if you’re persistent enough, you’ll see that at the end of June, ECDP had:
- cash: $1,405
- total assets: $112,925
- total liabilities: $117,881
- NO revenue since inception
- quarterly net loss: $6,584
Clearly, the optimistic press releases from years gone by has materialized which is probably why, about nine months ago, the company simply decided to stop issuing them. The latest announcement was made on November 24, 2014 and we haven’t heard from ECDP ever since.
So, there you have it – there’s no news, the financial statement is a mess, and the company’s credibility is completely shattered by its headquarters and its CEO.
Despite this, people are jumping in. The ticker exited the dreaded triple-zero levels last week and yesterday, after logging a volume of nearly 40 million shares, it reached a close of over $0.002 per share for the first time in just over five months.
Finding the reason for ECDP‘s run is also a bit of a challenge. As we mentioned already, there are no news that could spark any sort of interest, there are no filings, and there are no promotional emails. That doesn’t mean, however, that there’s no promotion. The discussion boards, have been quite active over the last few days. Most of the people who post there don’t shy away from using emboldened capital letters and an excessive amount of exclamation marks in order to express their optimism about ECDP and its products which, as we established already, failed to generate any sort of revenues. Thanks to the hype and enthusiasm, about an hour into today’s session ECDP is another 28% up which goes to show that even more investors are jumping in.
Those investors should probably have another look at the latest financial report. Once they do, they’ll see that during the first six months of 2015, ECDP issued 117 million shares as a conversion of $40 thousand worth of debt. In other words, they’ll realize that one in every three ECDP shares that they’re buying has been issued at a rate of $0.00035 per share.
