Energy Holdings International Inc (OTCMKTS:EGYH) Crashes Hard
Yesterday Energy Holdings International Inc (OTCMKTS:EGYH) continued to obliterate its share price. So far for two sessions in a row the stock has crashed by more than 28%. Currently the ticker is trading at $0.0145 per share and if you bought any shares at Tuesday’s closing price of $0.284 you could now be facing losses of over 45%. Is there a hope for a recovery?
Well, the stock’s ascent to its recent highs wasn’t exactly warranted in the first place. Without a single PR issued in the last 10 months and a corporate website where the latest news is now 4 years old the only thing that pushed the stock up were the abundance of rumors and speculations made by investors on the various message boards. Wishful thinking alone wasn’t enough to sustain the hype however and EGYH may be on its way back to its previous price ranges.
Not to mention that taking just one look at the last financial report filed by the company is enough to depress even the most enthusiastic investors – as of March 31 EGYH had:
• $162 cash
• $41,237 current assets
• $2,306,199 current liabilities
• ZERO revenues
• $977,140 net loss
The company was supposed to file its annual report by the end of September but they were unable to do so. Thanks to a notification of late filing EGYH got a 15-day extension so the report should be submitted next week.
The lack of any up-to-date information is not the only thing investors have to worry about though. During the nine-month period ended March 31 EGYH had sold around $167 thousand worth of convertible debt that could be turned into shares at a massive discount to the market price. And with the outstanding shares growing from 45 million to 57 million as this Schedule 13G statement revealed some the debt may have already been converted.
EGYH is surrounded by red flags that demand the use of caution. Do your own research and adjust your trades accordingly.
