El Capitan Precious Metals, Inc. (OTCMKTS:ECPN) On The Rise
El Capitan Precious Metals, Inc. (OTCMKTS:ECPN) isn’t one of the most traded stocks in the OTC marketplace and we rarely cover it. The ticker has been sliding down the charts for quite some time and the daily volumes have only increased.
The company has been promising to begin generating revenues for a lot of time now, but has failed to do so. It has issued press releases suggesting millions of dollars of revenue to come in the past couple of years, but the financial report for the first quarter of this year contains the following numbers of prime interest.
- cash: $83 thousand
- current assets: $1.03 million
- current liabilities: $2.36 million
- revenues: ZERO
- loss from operations: $277 thousand
The company rarely issues press releases and when it does so it fails to follow up on the things that they focus on. The most recent PR is from May 31 and it announced that ECPN has a warehouse full of more than seven tons of precious metals concentrates valued at $3.7 million.
There is the possibility that this announcement will have the same fate of the one from November 19 when ECPN announced a long-term agreement for sale of iron ore that we never heard of again.
Still, the news managed to excite the gullible ones and ECPN jumped 14.22% in the day of the press release. Yesterday it added another 18.37% to its value and closed at $0.058 while a total of 1.47 million traded shares generated $86 thousand in daily dollar volume.
It would appear that the upward run is over, for now, as ECPN is already 1.21% in the red as of the writing of this article. Be sure to do your due diligence and weigh out the risks before putting any money on the line.
