Ehouse Global, Inc. f/k/a Veterans In Packaging Inc (OTCBB:EHOS) Gets Demolished

Ehouse Global, Inc. f/k/a Veterans In Packaging Inc (OTCBB:EHOS) got pumped. And it wasn’t a small campaign either. It all started last Monday when OTCBB Journal began alerting investors about the great potential to be found in EHOS. They received a healthy $22,500 for their efforts, but despite the not-too-shabby compensation, trading volumes were negligible.

It was clear that the third parties were never going to be happy with less than $40 thousand worth of shares changing hands in a whole session and in order to do something about it, they called in The Stock Braniac (TSB). TSB is a more prominent player in the promotional world and, predictably, the compensation was quite a bit higher: $100 thousand. That said, they did manage to draw quite a lot more interest on Monday when nearly 470 thousand shares changed hands resulting in a marginal price increase.

Apparently, even this wasn’t good enough and the people who want to get the ticker on the map decided to engage two other outfits in the campaign. Minutes before the end of Monday’s session, infamous David Cohen informed his subscribers that EHOS is his new pick (compensation is $30 thousand) and about an hour and a half before yesterday’s opening bell, Stock Palooza jumped in (they pocketed $15 thousand). The effects were quite profound.

EHOS opened the session above Monday’s close, attempted to make an ascend towards the higher end of the charts, but caved in under the pressure within minutes. Six and a half hours later it was standing at $0.125 per share, in other words, 51.9% below its previous value. More than 1.7 million shares changed hands pushing the dollar volume to $319 thousand.

Typical penny stock promotion gone sour. We’ve seen it in the past and we’ll probably see it in the future. Still, we decided to ask ourselves: “What’s all the fuss about?”.

Well, EHOS was previously called Veterans In Packaging Inc and, as the name would suggest, they were involved in the business of selling protective packaging solutions for product shipment. Three and a half months ago, a share exchange agreement was closed, the packaging business was spun off and EHOS acquired Nutraliquids, LLC – a company involved in the development and commercialization of vitamin, supplement and functional beverages.

Predictably, the management team was changed as well and right now, the company has two employees, a line of 16 products the they want to launch in 2014 (if they have the required financing) and not much else.

When we say “not much else”, we mean it. An 8-K/A form was filed last Friday and it contains Nutraliquids’ financial statement covering the twelve months ended December 31, 2012. Here’s a summary of the all-important figures:

• total assets: $1,606
• total liabilities: $17 thousand
• annual revenue: $2,812
• net loss: $27 thousand

The presence of revenues is quite confusing since the same exact document states that the products will be launched next year, but you would agree that, with or without revenues, the statement still looks pretty poor.

On the bright side, a couple of press releases issued last week do sound quite optimistic. Apparently, a distribution agreement was signed and some financing was secured which might suggest that there’s a light at the end of the tunnel. The pumpers seem to have moved on as well, but, as you know, they can come back at any time. In any case, trusting your money with a newly-born penny stock that has a history of losing half of its value in a single day is definitely risky and considering all the dangers is, as always, crucial.

EHOS wasn’t the only ticker to lose ground during yesterday’s session – SK3 Group Inc (OTCMKTS:SKTO) also wiped out around a quarter of its value and it’s safe to say that Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX) isn’t coping particularly well with the pressure either.