Ecosciences Inc (OTCMKTS:ECEZ) Revived
Andy Carpenter is considered by many to be one of the more influential names in the penny stock promotional industry. Yet, even he has his duds every now and then. Take Ecosciences Inc (OTCMKTS:ECEZ), for example.
The promotion took place back in May and it was done by the book. At $350 thousand, the budget was hefty enough, Mr. Carpenter’s landing page was as colorful and optimistic as ever, and the newsletters were on hand to help as well. Yet, apart from a few high-volume days, ECEZ never really took off. Mr. Carpenter’s price target of $3.67 per share apparently wasn’t enough to impress investors and, slowly but surely, interest dwindled away completely.
That said, ECEZ never really crashed, either. Hanging on to the $0.50 levels from May was never really going to happen and last week, the ticker even briefly dropped below $0.40, but, having said that, other promoted penny stocks tend to incinerate much more substantial portions of their market caps in a much shorter period of time.
We don’t know whether its resilience has anything to do with it, but it must be said that the third parties are not done with the stock just yet. Mr. Carpenter’s landing page is still alive and kicking and we recently received some emails from various promotional newsletters. OTC Magic even said that they’ve heard about a massive awareness campaign coming in the very near future.
Apparently, this is more than enough for a lot of people to start jumping in. Yesterday, ECEZ registered its first properly active session in a while and after six and a half hours of hectic trading, it stopped at $0.441 per share – 22% above Wednesday’s close. So, OTC Magic and the rest of the newsletters can give themselves a pat on the back for succeeding where Mr. Carpenter failed. But what does the increased volume from yesterday really mean for the stock?
We should find out very soon. Make sure you consider one or two things before you decide whether putting your money in ECEZ is really worth it, though.
The stock is currently promoted and promoted stocks are extremely dangerous. Most of the times, the peaks are short-lived and the drops are often quite steep. Liquidity problems are frequently observed once the pumpers go away as well. Especially when the company is unable to present investors with some satisfactory results.
And, unfortunately, ECEZ‘s latest 10-Q isn’t exactly pretty. Here’s a summary of the figures recorded on February 28:
- cash: $4 thousand
- total assets: $10 thousand
- total liabilities: $378 thousand
- quarterly revenues: $4 thousand
- quarterly net loss: $20 thousand
There is, of course, the possibility of the management team improving those figures in the future, and it must be said that recent press releases suggest that they are in the process of doing just that.
This won’t change the fact, however, that some people received nearly 57 million shares (as adjusted for the forward split) for a little over $11 thousand a few years ago. And those people might be eager to finally take their profits.
