Energizer Tennis Inc (OTCMKTS:EZRT) Gets Pumped Once More
On Monday investors traded less than 100 thousand shares of Energizer Tennis Inc (OTCMKTS:EZRT) with the ticker actually closing 5.4% in the red. Yesterday however more than 9.1 million shares changed hands and EZRT finished the session with a gain 14.3% at $0.04 per share. What caused such a drastic change in investors’ sentiment towards the company?
Well, the intense buying was definitely not caused by a new announcement or press release issued by the company. In fact EZRT‘s last PR was published on September 21, more than two months ago. No, the reason for yesterday’s commotion is a new paid pump. After bagging $8500 thousand as compensation the newsletter OTC Stars sent out an email alert touting the stock but more importantly EZRT was also picked by the pumper Wolf of Penny Stocks. The so called Wolf received the much bigger sum of $50 thousand for his services.
With the positive outcome of the session and the massive increase in volume you might think that the pump is working rather well this time. While EZRT did finish the trading day with a respectable gain those investors that believed the pumpers and bought in early in the session may have suffered some serious losses. The stock opened with a massive gap up at $0.057 and minutes later reached a high of $0.068. Such prices proved to be extremely short-lived though and as we said by the time of the closing bell EZRT had dropped down to $0.04.
EZRT may find supporting even this price a difficult task though. With the pumpers moving on to new picks the company will be once again left on its own. While the current market cap of $3.5 million commanded by EZRT is rather modest it is still far too inflated. Let’s remind you that at the end of July the company had:
• $10 cash !!!
• $3,321 current assets
• $236,053 current liabilities
• ZERO revenues since inception
• $50,378 net loss
The subsequent events section of the report didn’t reveal any new financing deals and as we said earlier there haven’t been any new PRs either.
In addition to the abysmal financials investors shouldn’t forget that there are millions of extremely underpriced shares that could very well be the reason for the pumps for EZRT. Two years ago a group of 27 investors bought 947,500 shares priced at $0.04 each. Thanks to the 30-for-1 forward split that was performed this March however these people now owned more than 28 million shares for which they paid a total of $37,900.
Add the skull and crossbones sign that is currently marking EZRT‘s OTCMarkets page and trading the stock gets even riskier. Without the artificial hype created by the pump interest in the ticker could dry up and many of the people who jumped in yesterday could find themselves stuck in a rather illiquid pennystock. That is why we are always warning you to do your own due diligence before committing to any trades and to always take the words of the various pump outfits with a grain of salt.
