eMONEco, Inc f/k/a Mascot Ventures Inc (OTCMKTS:EMON) Takes it Slow and Steady

Penny stocks are renowned for the massive spikes and the terrifying falls they often experience. People invest in OTC tickers not only because they are much cheaper than the ones listed on the national exchanges, but also because they are much more exciting. eMONEco, Inc f/k/a Mascot Ventures Inc (OTCMKTS:EMON), however, appears to be an exception to the rule. In fact, it seems to be quite sluggish.

Take Friday’s session for example. The gains at the end of the day stood at less than 1%. At more than $397 thousand, the dollar volume was quite substantial, but despite it, EMON failed to log any significant intraday moves and it finished the week at $2.25.

This, as you can see from the chart at the beginning of the article, has been going on for quite a while, but it must be said that despite the stock’s reluctance to surge, investors are still interested. Some are even ready to buy first, and look for some information about the company later. Generally speaking, this is not the best investment strategy out there, but it should also be noted that doing due diligence on EMON is somewhat tricky.

The increased interest we’re currently seeing doesn’t appear to be caused by anything immediately obvious. The latest press release, for example, is now almost a month old and in it, Donald Latson, the company CEO, says that they “continue to work diligently to solidify our place amongst the leaders in the electronic payments arena.”

The shareholders are probably keeping their fingers crossed in the hope that this really is possible, but if you take a more objective point of view and look through the latest 10-Q, you’ll see that standing next to the big boys in the industry will be anything but easy. Here’s what EMON had at the end of January:

• cash: $2,285
• total assets: $17,285
• current liabilities: $421,345
• NO revenue
• quarterly net loss: $117,256

Of course, these figures are now four and a half months old and things might have improved since they were recorded, but unfortunately, nobody can be certain whether this is the case because EMON announced on Friday that they will be late with the report for the three months ended April 30.

And this basically means that if you put your money on the line right now, you should be ready to wait for a financial statement or a positive update which could make the stock a bit more lively. The thing is, nobody likes to wait in Pennyland, especially when there’s millions of dollars of potential profits waiting to be taken. And it must be said that certain people do have the opportunity to log some pretty impressive gains from EMON‘s current market price.

The investors who bought 24,180,000 shares for $40,500 several years ago, for example, can walk away with pretty huge bags of money if they decide to sell. The note holders who can convert debt into stock at a fixed rate of $0.25 per share are also in a pretty good position.

Sadly, once the dust settles, the same might not be true for the investors who are putting their hard earned cash on the line at the moment.