eMONEco, Inc. (OTCMKTS:EMON) f/k/a Mascot Ventures Inc Moves Up On Record Interest
Yesterday investors shifted over a million of eMONEco, Inc. (OTCMKTS:EMON)’s shares. The number of traded shares not only surpassed the monthly average by more than 6 times but it actually set a new record for the company. The increased interest pushed EMON 12.3% up the chart to a close at $0.1825. What caused investors to suddenly rush towards the ticker though?
Finding the answer may prove to be quite a difficult task – there is no immediately discernible reason for yesterday’s unprecedented trading. In fact EMON have not have a single PR outside of their SEC filings for close to six months now. The last official press release was a corporate update published on May 20. In it the company stated that it may be facing “a bright and exciting future”. At least for now they seem to be facing a rather dreadful nightmare.
At the end of July, in the span of just a couple of sessions, EMON crashed hard dropping from over $2.30 per share to less than $0.20. At the end of September a new 52-week low of just $0.07 was registered. Although the company managed to bounce from those lows and as we said it currently stands at around 18 cents any investors who bought in prior to the crash may still be facing devastating losses.
Not to mention that after yesterday’s upwards move EMON now commands a market cap of $11.2 million which, although not that big, is far too much for the company’s fundamentals to support. According to the latest financial report at the end of July EMON had:
• $2802 cash
• $17,802 total assets
• $599 thousand current liabilities
• $376 thousand other current liabilities
• ZERO revenues
• $221 thousand net loss
That is right, three and a half months ago EMON had less than $3000 thousand in cash and less than $18 thousand in total assets. During its previous fiscal year the company didn’t generate even a dime in revenues and the situation is exactly the same for the first nine months of their current fiscal year. At the same time the net loss for the nine months ended July 31 reached more than $1.77 million.
EMON is a dangerous stock that demands the use of caution. In our previous articles we already warned you about the underpriced shares that were sold a couple of year ago. The company also has several convertible notes with a conversion price of $0.25. The red flags should not be underestimated and any trades must be preceded by extensive research.
