Endeavor IP, Inc. (OTCBB:ENIP) Going Up Again

Endeavor IP, Inc. (OTCBB:ENIP) left a sour taste in the mouths of quite a lot of investors last week when three horrific sessions destroyed more than 40% of the market cap. Similar drops are not that uncommon in Pennyland and they sometimes happen because of some bad news or a less than impressive financial statement. Usually, the losses are too heavy to bear for most investors and that’s why tickers that plummet so suddenly are, more often than not, left to wither and drop even further. When the pumpers are involved, however, things look a little bit different.

As you probably know already, there’s a $1 million promotion running for ENIP which is led by 900 Percent Stocks. They weren’t going to just leave the ticker plummet to its demise after only two weeks of touting and that’s why they spent some time during the weekend preparing an email which said that ENIP was in for a bounce. Wouldn’t you know it, they turned out to be right. Three green sessions followed and the ticker is now setting its sights on the levels reached during the earlier stages of the pump.

Having seen the bounce, some of you will probably say that the promoters might actually know what they’re talking about after all. Others will point to the latest press releases and note that things around the company seem to be going rather well.

Indeed, one of the latest announcements informs us that ENIP have received a notice of allowance from the United States Patent and Trademark Office which should help them gain the upper hand during the patent infringement lawsuits everyone is talking about. An hour before today’s opening bell, they issued another press release, this time informing us that the company CEO, Mr. Cameron Gray, will present ENIP in front of some investors at the LD Micro Sixth Annual Conference in Las Vegas.

Without a shadow of a doubt, there are some interesting developments around the company and it’s pretty clear that the investing public is responding. ENIP even managed to gap up at the open today and about half an hour after the start, it’s running around 2.2% above yesterday’s close. The thing is, with the $1 million pump still running, it’s only a matter of time before it all falls to pieces.

As we mentioned in our previous articles, bouncing up and down the charts is not uncommon for promoted stocks. The people that are now pumping ENIP were busy with Sanborn Resources Ltd (OTCMKTS:SANB) and Supernova Energy Inc (OTCMKTS:NHUR) (formerly known as Northumberland Resources, Inc.) back in the summer and you can see from the two charts on the right that there were several peaks. In the aftermath, however, investors that got a bit carried away with the hype were left holding the proverbial bag.

Even if you decide to ignore the pump as a red flag, you should probably bear in mind that at yesterday’s close, ENIP‘s market cap hovers just above $40 million which is a bit of a stretch for a penny stock that has $450 thousand in the bank, a working capital deficit of around $140 thousand and a headquarters that appears to be located in a nice-looking residential house near a golf course in California. Extra caution and consideration of all the risks is absolutely crucial before putting any money on the line.

ENIP wasn’t the only ticker to gain some ground during yesterday’s session. Fueled by its own $800 thousand pump, Nevada Gold Corp (OTCBB:NVGC) added another 9.6% and is now eyeing the $0.50 per share mark. NVGC‘s performance might look impressive, but it’s still nowhere near as amazing as the one displayed by Life Stem Genetics Inc (OTCBB:LIFS) whose stock seems well positioned to challenge the $2 levels. In fact, the only thing that could stop it, is the $1.8 million promotion.