Energizer Tennis Inc (OTCBB:EZRT) Bracing Itself for the Future
Energizer Tennis Inc (OTCBB:EZRT) issued a press release on April 30 and announced that the company is about to go through some changes. Apparently, they are not happy with the results achieved through the tennis instructional videos and they want to alter the business plan.
EZRT, the press release says, will try to acquire some working companies in the technology field. The initial focus will be placed on the video gaming industry and later, they will also try their hands at the crypto-currency business. A new name and ticker symbol are expected in the near future as well.
It must be said that things don’t sound particularly convincing. Details, for one, are somewhat scarce. A few days after the press release hit the wire, the company did file an 8-K form which informed us of an agreement for the acquisition of a hard-to-spell website offering brand promotion in online games. If the deal is to be closed, however, EZRT will need to pay $250 thousand and, as we mentioned last week, the company simply doesn’t have this sort of money. In fact, at the end of January, it had:
- $44 in current assets
- $16 thousand in current liabilities
- NO revenue since inception
- $18 thousand in quarterly losses
Some new people took EZRT‘s helm a few short weeks before the company decided to change its business plan and the figures above show that they have their work cut out for them. Sadly, their track records are not exactly perfect. The new CEO, for example, is called Robert Thompson and he has been involved with other OTC enterprises like Cal Bay International Inc (OTCMKTS:CBYI) and Resource Ventures (OTCMKTS:REVI) – not exactly the most successful penny stock companies out there.
And although EZRT seem pretty proud of their new corporate headquarters in Orange, California, a few clicks of the mouse will tell you that it’s offered as a virtual office solution.
Despite the obvious problems, the stock seems to be drawing some attention. The volumes are not exactly consistent and neither is the performance. In fact, the ticker has been pretty much stuck between $0.15 and $0.17 since the very first active session on May 5. The dollar volume of over $540 thousand from yesterday, however, means that some retail investors are buying stock at the moment and are waiting for something to happen in the future. And they probably aren’t the only ones.
If you take a look at the 2013 10-K, you’ll see that a little over two years ago, twenty-seven individuals bought 947,500 shares at a price of $0.04 a pop. In March, there was a 30 for 1 forward split which means that these individuals could now be holding on to as much as 28,425,000 shares of EZRT common stock. And they paid just $37,900 for them.
Unloading their discounted stock on the open market could bring some hefty gains for these individuals, and a potential paid pump in the near future could maximize their profits. Make sure you bear this in mind while planning your next move.
