Ecosciences Inc (OTCMKTS:ECEZ) Continues To Crash
We don’t see that many pumped stocks in the OTC marketplace lately, but the ones that we see usually go by the book and end up in horrible losses. Ecosciences Inc (OTCMKTS:ECEZ) is the most recent example of why you should stay away from a stock that is being touted for compensation.
The compensation for the touting wasn’t that small either. Pumpers received compensations ranging from $20 thousand to $25 thousand. The most interesting thing is that that’s far more than the company has in assets. Let’s take a quick look at the report for the quarterly period ended February 29.
- cash: $2 thousand
- total assets: $11 thousand
- total liabilities: $713 thousand
- quarterly revenues: $6 thousand
- quarterly net loss: $108 thousand
Those numbers are pretty terrible and you might be wondering why someone would pay promoters to push ECEZ up. It just so happens that there is plenty of outstanding debt that can be turned into shares at prices as low as $0.001 a pop.
This means that there might still be room for profit for whoever is paying for the stock to be touted. Even after yesterday’s crash that cost ECEZ another 18.42% of its value the stock finished at $0.015. Trading wasn’t as heavy as it was when the ticker dropped 40.20% in the end of last week and the 5.06 million shares that changed their owners generated only $81 thousand in daily dollar volume.
The ticker has managed to stabilize, but considering all the red flags you should be sure to do your due diligence and weigh out the risks before putting any money on the line.
