Endeavor IP Inc (OTCBB:ENIP) Crumbles Again

On November 12, a few hours before the start of the trading session, 900 Percent Stocks, the entity leading the promotion for Endeavor IP Inc (OTCBB:ENIP) sent us an email saying that the stock can reach $3 per share. Less than twelve hours later, the ticker had lost around 12% of its value. There were no emails before the start of yesterday’s session and yet, ENIP still failed to impress. In fact, it slid by around 17% and it seems to be moving further and further away from the heights reached a couple of weeks ago. So, why is that?

Well, the alert we talked about is just a small part of a rather big promotional campaign (total budget amounts to no less than $1 million). Emails, landing pages, articles and even a video were set up to push ENIP in the right direction. And they succeeded… briefly. The whole campaign started to rear its head at the end of October and it was particularly intense during the first week of November. Fueled by all the excitement ENIP managed to reach a 52-week high of $1.28 per share last Monday.

Unfortunately, there were many things to suggest that these sort of levels were too high for the ticker and, as we mentioned already, it crashed heavily plummeting way below the $1 mark in a matter of days. It was then pushed back up by some more emails and a couple of optimistic announcements, but yesterday’s terrifying drop suggests that it’s in for another crash. Or is it?

Early trading today could suggest otherwise. In fact, about half an hour into the session, ENIP is hovering around 4% above yesterday’s close but will that really make a difference?

We’re about to find out. You should bear in mind, however, that the first hours during yesterday’s session also looked pretty optimistic. If you have a look at the intraday chart, you’ll see that the drop came in around 2PM. Until then, ENIP‘s behavior was relatively steady and it seemed like it was about to log another green session.

The increased volumes during the drop might suggest that quite a lot of stock was suddenly unleashed on the open market, but we can’t say that we’re all that surprised by this. As we mentioned in our previous articles, Central A Marketing, the entity managing the colossal promotional budget discloses in the fine print under their materials that they hold “a large amount of shares” and that they intend to sell them. We have also noted that other people have received discounted holdings in the company in the past which means that there should be no shortage of traders who want to exit ENIP at the best possible price.

Even if that wasn’t the case, the pump itself is enough of a threat. We’ve been around penny stocks for long enough to be familiar with the track records of the most prominent promotional outfits and, as we already informed you, the people who are currently touting ENIP have been involved with some horrific failures in the past. As a part of the awareness campaign, the pumpers published an article on an advertorial called Financier Times (not to be mistaken for the world-renowned daily newspaper) and this is the same thing that happened to Sanborn Resources Ltd (OTCMKTS:SANB) and Supernova Energy Inc (OTCMKTS:NHUR). Saying that these two promotions failed would be a gross understatement. But what about the smaller pumping entities?

Stock Palooza is also pretty active on the email front and a quick look at their track record reveals that they are involved in two other promotions – the ones for Pan Global Corp (OTCMKTS:PGLO) and Life Stem Genetics Inc (OTCBB:LIFS). You can see from the charts on the right that these two tickers aren’t exactly flourishing as well.

With all that in mind, we are struggling to see how ENIP can prove itself to be the exception to the rule. The company isn’t doing particularly well in terms of financials, the business plan is based on quite a lot of optimism and the artificial hype is already starting to take its toll on the price. Make sure you consider all the risks carefully before putting any money on the line.