Eco-Tek Group, Inc. (OTCMKTS:ETEK) Starts Crashing

While on Tuesday Eco-Tek Group, Inc (OTCMKTS:ETEK) took a little step downwards by dropping 5%, yesterday they crashed hard. Right from the start the ticker plummeted and was unable to recover for the rest of the day. In the end 22% were lost and the stock is now sitting at $0.27, full 12% below the price it had at the start of the pump.

The negative results may signal the end of the promotion with most of the pumpers already moving on to find new targets. Still, some remain with Stock Mister being the more influential among them. It seems that the $450 thousand allocated to spreading awareness about ETEK have began to dry up with the new additions The OTC Professor and Prime Time Stocks, affiliates of Primary Investments, disclosing compensation of just $4000. In a typical move after a crash the newsletters have changed the tactic and instead of talking how awesome the company is have began promising a bounce play.

Exactly as we anticipated the company themselves aided the promotion by releasing a third PR news in a row for the third day of the campaign. This time they announced a new ByPass 24 Program, a combination of their lubricant products with the ByPass Filter system. And although this is good to know the article has hardly any substantial information in it.

ETEK are revenue generating but the acquired funds are immediately offset by a three times bigger net loss. And the red flags around their common shares are enough to make any investors suspicious. Seed shareholders have 76 million shares purchased for the mind-boggling price of $0.0007 after a 28 for 1 forward split.

But hard as it may be to believe it, this is not the worst part. ETEK have been generous enough to sign a multitude of convertible notes to various entities that if fully converted will amount to 680 million shares. And this time the conversion price is 50% lower – $0.000357. Even at the current prices of $0.27 some tremendous gains can be made.

We always encourage investors to do their own due diligence and never take the information presented by the pump emails at face value.

Yesterday Arch Therepeutics, Inc. (OTCBB:ARTH) also suffered. The medical company is unable to stop spiraling downwards and lost another 22%. The AwesomePennyStocks(APS) prolonged target – Xumanii, Inc. (OTCMKTS:XUII), managed to avoid a disastrous session. Dropping 5 cents in less than 30 minutes after opening and remaining there for most of the day, the company made a last minute surge and closed 1% in the green.