Ener-Core Inc (OTCBB:ENCR) Tumbles Before The Weekend

[[tagnumber 0]][[tagnumber 1]]The stock of Ener–Core Inc (OTCBB:ENCR) was hovering around the $0.15 per share mark throughout most of the first quarter of the year before beginning an upward run in the second half of march that led it above the $0.20 mark.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The upward run was due to [[tagnumber 6]]ENCR[[tagnumber 7]] being featured in several publications, but it came to an end as April began. A reason for that might be the fact that the reasons recorded in [[tagnumber 6]]ENCR’s[[tagnumber 7]] balance sheet from the annual report for 2014 weren’t that impressive.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 13]] [[tagnumber 14]]cash: $2.17 million[[tagnumber 15]] [[tagnumber 14]]current assets: $2.47 million[[tagnumber 15]] [[tagnumber 14]]current liabilities: $1.73 million[[tagnumber 15]] [[tagnumber 14]]revenues: $868 thousand[[tagnumber 15]] [[tagnumber 14]]net loss: $10.53 million[[tagnumber 15]] [[tagnumber 24]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]On the good side, we can’t ignore the fact that [[tagnumber 6]]ENCR[[tagnumber 7]] has recorded some decent revenues, but the net loss is quite big and judging by the fact that it mostly consists of selling, general and administrative expenses we don’t see any way that the company will turn on a profit any time soon.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The cash on hand, although impressive, has also shrunk, but [[tagnumber 6]]ENCR[[tagnumber 7]] has been working on that. The latest press release from April 23 informs us that the company has entered a definitive agreement for a private placement of $3.1 million in the form of senior secured notes and warrants.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This, however, had a negative effect on the stock’s price which fell 12.75% in Friday’s session and finished the week at $0.195. We saw a total of 759 thousand shares change their owners which, at that price, generated only $152 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This week has started rather slow and [[tagnumber 6]]ENCR[[tagnumber 7]] is a mere 1.03% higher from Friday’s close, sitting at $0.197 as of the writing of this article. In any case, doing your due diligence and weighing out the risks is crucial before putting any money on the line. [[tagnumber 2]]