Eco-Tek Group, Inc.(OTCMKTS:ETEK) Tumbles On The Second Day of Pump
Yesterday we warned you that a pump with a total budget of $450 thousand was initiated for the stock of Eco-Tek Group, Inc (OTCMKTS:ETEK). 22 distinct alert emails were distributed from various pump newsletter resulting in a 37% surge on Monday. With most of them disclosing to being hired for a one-day promotional services we expected the campaign to slow down but on Tuesday once again more than 20 alerts were disseminated.
Apparently Stock Mister and Research Driven Investor decided to take the vacant places for $25 thousand and $15 thousand, respectively. In turn Stock Mister decided to hire Rising Penny Stocks and its various affiliates for the same sum of $15 thousand.
ETEK themselves have spurred into action and have released two PR news for the two days of the campaign. First came the announcement about a new distributor for Peru that also placed a $50 thousand order and is contractually obligated to make subsequent purchases every twelve months of the five-year agreement. Then yesterday they made public that the United States Environmental Protection Agency has certified their Eco-Tek 4 in 1 Fuel Treatment for Gasoline.
With all the effort put into spreading awareness one would expect the stock to continue climbing. In reality, the exact opposite happened. At closing time the ticker was 5% down compared to the previous close. Coupled with the almost record breaking traded volume of 2.1 million shares it means many traders suffered losses especially if they bought in in the morning when the price was above $0.4.
ETEK becomes even riskier when you take a look at its financials. Despite generating revenues the company is still far from being profitable. Way more concerning though are some of the deals made with its common stock. Seed shareholder have 76 million shares that they got for $0.0007, adjusted after a 28 for 1 forward split. Not to mention the multitude of convertible notes with $0.000357 set as price per share. If fully converted they will amount to almost 700 million shares. So some people stand to rake in considerable profits thanks to the increased activity around the stock.
Investors are strongly advised to do their own due diligence and decide if the red flags around the company aren’t a bit too much.
During yesterday’s session ScripsAmerica, Inc. (OTCBB:SCRC) slowly but surely continued to retake all the value they lost right before the weekend. The stock rose by 19% and closed at $0.61. 22nd Century Group, Inc. (OTCMKTS:XXII) though are sliding further down with sixth subsequent negative session. And with the 17% wiped the trend seems to be picking up speed.
