Ener-Core Inc (OTCBB:ENCR) is Finally on the Move
The pump for Ener-Core Inc (OTCBB:ENCR) started back in February. Mr. Tobin Smith was hired to write a rather optimistic report which was later put on several landing pages. According to the fine print, the budget for the whole thing amounts to $1 million and considering this, ENCR‘s performance so far has been rather disappointing.
Four months ago, the ticker was hovering around $0.90 per share and Mr. Smith said that it could soon reach $3. Unfortunately, this didn’t happen. Instead of going up, ENCR slid down and on April 30, it dropped below the $0.30 per share mark. Although it did manage to recover some of the lost ground, Mr. Smith’s $3 price target is still beyond reach. Is this about to change, though?
Well, the pump is still on. The landing pages are up and running and the excitement coming out of them might just give the ticker another push. There’s some good news coming out of the company headquarters as well.
On Thursday, ENCR announced that their first gradual oxidization power station in Europe is now open for business. They even included a video coverage in the press release and, not surprisingly, the following session ended with 43% in gains and a dollar volume of around $440 thousand. ENCR managed to close the week just above the $0.60 per share mark.
Even when you take a look through the latest 10-Q, you’ll see that it’s not as horrific as the ones we’re used to seeing from promoted penny stock companies. Here’s what ENCR recorded on March 31:
- cash: $192 thousand
- current assets: $1.1 million
- current liabilities: $1.6 million
- no quarterly revenue
- quarterly net loss: $1.9 million
As you can see, the figures are not perfect, but they’re not too discouraging, either. What’s more, the company completed a private placement in April which means that their cash position should be a lot stronger at the moment.
All in all, at first glance, it seems like ENCR is moving in the right direction. The opening of the power station is indeed a major milestone for the company and it will hopefully result in some significant revenues. While an investment is never risk-free, people can at least hope that ENCR will be successful. There is, however, a rather problem and it lies with the paid pump.
The fact that someone has paid $1 million for the promotion means that there are probably people who can profit from the whole thing. Who could they be?
We can’t be sure, but we can see from Page 9 of the 10-Q covering the first quarter of 2013 that four years ago, ENCR (then called Inventtech, Inc) sold 25,500,000 shares for just $42,500. This brings the value of each share down to $0.0016 which, as you can see, is a massive profit opportunity.
Bearing this in mind before putting any money on the line is absolutely crucial.
