Ecosphere Technologies, Inc. (OTCMKTS:ESPH) Drops Before Thanksgiving
The stock of Ecosphere Technologies, Inc. (OTCMKTS:ESPH) usually makes small percentile movements in price and is rarely capable of generating more than $100 thousand in dollar volume.
The two trade sessions before Thanksgiving, however, were different. Unfortunately, after a 15% gain that was caused by a press release in which the company announced that it has received U.S. patent for their Ecos PowerCube®, a self sustaining solar-powered generator, the ticker slid back and lost its gain.
The drop was significant and pushed the stock 12.85% down to $0.251 on almost five times the average volume. The total amount of shares that switched hands in Wednesday was estimated at 503 thousand and generated $137 thousand in dollar volume.
The main problem for the company at the moment, however, is the financial state in which it is. The numbers of prime interest from their report covering Q3 of this year are as listed:
- cash: $1.4 million
- current assets: $4.7 million
- total assets: $21 million
- current liabilities: $1.6 million
- total liabilities: $2.3 million
- revenues: $0
- net loss: $2.79 million
In fact, the company hasn’t generated any revenue since the beginning of the year, compared to $17 million in the nine months ending September 30, 2012. The cash reserves have been almost cut to half, but are still pretty decent.
The question of when ESPH will start generating revenues again remains. Until that time comes, be sure to do a lot of due diligence and weigh out the risks before making a decision to invest in their stock.
Fresh Healthy Vending International, Inc. (OTCBB:VEND) also closed the last session before Thanksgiving on a bad foot as they dropped a hefty 28% in value. Transgenomic, Inc. (OTCMKTS:TBIO) lost a smaller, 6% of their price on a heavy volume.
