Endeavor IP Inc (OTCMKTS:ENIP) Hits Double Zeroes on PR
The last market session was quite a sight for Endeavor IP Inc (OTCMKTS:ENIP). The company’s stock had previously quietly retreated all the way to rock bottom, at $0.0001. Following a press release that hit the wire yesterday morning, ENIP shot up 900%, all the way to to $0.001 per share. 289 million shares changes hands in the process.
The company is, as the name suggests, an intellectual property services and patent licensing entity. This explains why the company’s newsfeed consists virtually entirely of PR about filing lawsuits over different patents. Yesterday ENIP announced company subsidiary signed a patent license and settlement agreement with Schneider Electric USA.
This is followed by a quintessential fluff paragraph by CEO Mr. Diaba, explaining how strong ENIP‘s patent portfolio is and how successful the company is in monetizing it. It would be more useful if the PR gave some sort of indication of the agreement’s scope – did Schneider pay $1,000,000 to settle claims and license use of the patent, or did they pay $10,000? It’s anyone’s guess, as the company simply announced the agreement.
When your stock is scraping the absolute bottom, obviously, this is sufficient to give you a rocket boost of 900%. ENIP managed to become overbought in a single session. How the stock will sustain its new prices is not too clear. Here is what ENIP‘s balance sheet looked in its last report:
- $26 thousand in cash
- $3 million in current liabilities
- $117 thousand in quarterly revenues
- $555 thousand in quarterly net loss
As of June 19, 2015 the company reported having a total of 314 million outstanding shares. Yesterday’s volume was 289.9 million. Whether ENIP shifted 92% of its total outstanding stock or it has actually diluted its OS much, much higher than the 314 million is a question investors should answer for themselves.
Back in mid-March 2015, the company had just 190 million shares, which means ENIP diluted its common stock 65% over its last reported quarter. Whether dilution maintained a similar pace in the last quarter will become evident when the company files its next 10-Q, due in just over a week.
