eCrypt Technologies, Inc. (OTCBB:ECRY) Tries To Stabilize After Massive Drop

[[tagnumber 0]][[tagnumber 1]]The massive $5.1 million paid promotion for eCrypt Technologies, Inc. (OTCBB:ECRY) sent the ticker flying high after it started back in the second half of December when it was sitting at just $0.13 per share to a price of $0.55 at December 9.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Investor interest was quite high as more and more people were buying in on hype, but by that time [[tagnumber 6]]ECRY [[tagnumber 7]]had reached a market cap of about $69 million, which considering the fundamentals of the company was quite bloated. Just a quick look at the numbers of prime interest contained in the company’s balance sheet from their report for the third quarter of the year shows that this number is absurd, considering there aren’t any major developments.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash and total current assets: $26 thousand[[tagnumber 13]] [[tagnumber 12]]total assets: $31 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $1.85 million[[tagnumber 13]] [[tagnumber 12]]revenues: $0[[tagnumber 13]] [[tagnumber 12]]net loss: $164 thousand[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We warned you, back in our previous article, that [[tagnumber 6]]ECRY [[tagnumber 7]]might suffer the consequences of its hype–induced, bloated market cap and see a significant and more permanent correction. As far as serious goes, this Wednesday was a really bad day for people who decided to take a bet on [[tagnumber 6]]ECRY [[tagnumber 7]]without doing their due diligence.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]During that faithful day the ticker lost a whopping 63.64% of its value, going from $0.5575 at the beginning of the session to $0.20 at the final bell. By the end of the session there were more than 16.7 million shares that were traded as people were trying to get out with as little losses as they could and [[tagnumber 6]]ECRY [[tagnumber 7]]recorded $6.04 million in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 38]][[tagnumber 39]][[tagnumber 2]] [[tagnumber 0]]Things, however, did manage to stabilize in yesterday’s session without the help of any press releases or pump emails. [[tagnumber 6]]ECRY [[tagnumber 7]]added 9.50% to its share price and closed at $0.219 with half the previous day’s volume, recording $2.12 million in trade value.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The lack of news, however, might still take its toll as the company stock has started sliding after today’s market open and as of the writing of this article is 6.85% down at $0.204. Things might get even worse and considering the massive amount of cash paid for the promotional campaign we might see another round of pump emails which would make the ticker even more volatile.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]In any case, it is always good to do your due diligence and weigh out the risks, especially when dealing with stocks that move solely on paid promotions.[[tagnumber 2]]