Energy Holdings International Inc (OTCMKTS:EGYH) Surges Once More
During yesterday’s trading the stock of Energy Holdings International Inc (OTCMKTS:EGYH) made another impressive jump surging by more than 38% and closing at $0.0284. At the end of last week the ticker registered a gain of 100%. Investors are definitely excited about the stock but using some caution may not be a bad idea.
EGYH have not filed a single official PR in 2015. In fact, the last one came at the start of December 2014. Their official website is in even worse shape with the latest news published there being close to four years old. At the same time EGYH‘s financial state is nothing short of atrocious. The latest quarterly report showed that as of March 31 the company had:
• $162 cash
• $41,237 current assets
• $2,306,199 current liabilities
• ZERO revenues
• $977,140 net loss
We are using information that is over six months old because EGYH‘s annual report that was supposed to be filed by the end of September is still missing. The company submitted a notification of late filing, which gave them an extension of 15 days so the report should be completed by the middle of the month.
The annual report is extremely important. It will reveal if EGYH are still relying on convertible debt to fund their operations. During the nine-month period ended March 31 the company sold $167 thousand worth of new convertible notes that can be turned into shares at massive discounts – $87 thousand at a 42% discount while the rest is convertible at a 50% discount. Some of the debt may have already been converted because as the Schedule 13G statement filed on September 30 showed the number of outstanding shares has grown from 45 million as of February 23 to over 57 million at the moment.
If by now you are wondering what exactly is pushing the stock up the chart, well, the answer is simple – rumors and speculations. Investors are anticipating a new PR and some are even trying to predict what the news will be. Is the PR actually coming? Nobody knows. Is it going to be substantial enough to warrant the recent increase in share price? Again, nobody knows.
The spike in interest towards EGYH and the resulting volatility of the stock certainly create some opportunities for quick gains. The risks are more than significant though and before putting any money on the line you should do your own due diligence.
