eCrypt Technologies, Inc. (OTCBB:ECRY) Sinks Deeper
Last Wednesday the stock of eCrypt Technologies, Inc. (OTCBB:ECRY) got obliterated when it lost nearly 64% of its value and dropped from close to $0.56 to just 20 cents in a single day. On the next day it seemed like there was still hope for the stock as it made a 9.5% recovery and closed at $0.219. Whatever positive momentum was still left though quickly vanished and when Friday’s session began ECRY resumed plummeting downwards wiping another 32% and reaching $0.149.
On November 21 a $5.1 million promotional campaign carried out by the infamous pumper StockTips began. In just a couple of weeks the artificial hype propelled ECRY to an unrealistic high of $0.59 per share but now that the ticker has lost almost 75% of its valuation in just 3 days even StockTips and their fictional co-editor Mike Statler might not be influential enough to push it back up.
The job of the pumpers became even harder when OTCMarkets decided to mark ECRY’s profile page with the skull and crossbones sign. An even bigger warning sign, however, was the latest press release published by the company half an hour before the end of Friday’s trading. In it the management team of eCrypt distanced themselves from the paid promotion for a second time (the first PR about the pump was issued on November 25 and it stated that “The Company and its officers and directors are unware of any business reason” that could support the rise in share price.)
This time though the PR contained a lot more details. Apparently ECRY has been contacted by the British Columbia Securities Commission (BCSC), the Financial Industry Regulatory Authority (FINRA), the U.S. Securities and Exchange Commission (SEC) and even OTC Markets Group, Inc. regarding the promotional campaign. If this is indeed the case StockTips could just decide to go into silence until their next pick.
If the pump is over ECRY might not be able to support even their current market price. At the moment the company commands a market cap of over $18 million while their latest financial report contained the following numbers:
• $25 868 cash and total current assets!!!
• $31 thousand total assets
• $1.8 million total liabilities
• ZERO revenues
• $164 thousand net loss
ECRY should be approached with extreme caution. The stock is already crashing hard which may signal that the pump is coming to an end. The possibility of an investigation by the SEC and even FINRA should not be neglected either. One of the previous StockTips pump – the one for Pingify International, Inc. (OTCMKTS:PGFY), already ended in a suspension by the SEC. Any trades with the stock should be attempted only after doing extensive due diligence.
