Ecolocap Solutions, Inc. (OTCMKTS:ECOS) Stages a Run

Ecolocap Solutions, Inc. (OTCMKTS:ECOS) is the new sub-penny stock that is peaking after three crazy days of buying. ECOS has not been around for a while, sliding in the past year from the peak around 2 cents. Now, ECOS added 50% to $0.0012 on dollar volumes of above $355,000.

The ticker showed higher activity in 2013, though mostly on wild daily swings. The company has not been promoted since July 2012, when for a short while the stock reached 4 cents. During that time, ECOS has not been too busy with press releases, offering nothing more than the occasional SEC filing. ECOS has not even touted its alternative energy products, for which it claims to use nanotechnology.

And despite the fact that at double-zeroes, the fall may be inevitable, ECOS shows also a very shaky financial situation, with:

• $88 cash

• $3 million total current liabilities

• No sales in the last few quarters

• $18 million accumulated net loss

It seems that nanotechnology and alternative fuels are no a lucrative endeavor for this company, and that all gains right now are no more than a heated-up sub-penny selection. In addition, while there is no new promotional campaign, the future of ECOS was touted in the CEO’s blog, stating that the company received a large investment from Chicago Venture Partners, and that would boost the production of alternative fuels. The CEO Michael Siegel also announced that in the next few days the company would reach out with a formal press release.

It’s very rare that such a cheap stock would be standing in for a truly solid company. In the case of ECOS, there is still not enough substance and the latest trend where the shares rose 12 times in three days is threatened.

In the past days, we had one sub-penny spike up, Trans Global Group, Inc. (OTCMKTS:TGGI). The shares made a nice neat peak, by growing 100%, then slashing off 50% of their value. It turned out TGGI was nothing more than hot air, which unfortunately may have taken some naïve investors along for a ride.

3D Eye Solutions, Inc. (OTCMKTS:TDEY) is still chugging along, drifting sideways in a tight range, currently around $0.005. This stock is relatively stable for a double-zero.

For ECOS, you may consider the fall has already started. The company has to prove its ability to increase sales and reserves, and stop digging itself into losses. Until then, avoid putting in unaffordable sums, since a double-zero can crash from almost any position.