Enova Systems, Inc. (PINK:ENVS) Goes Down with a Post-Promo Fever
After simmering quietly around $0.01 per share, Enova Systems, Inc. (PINK:ENVS) got a pump late last week that sent the stock price sky-high, charting a spike that crashed within the hour but still helped ENVS close over 500% up on Thursday.
Pumper The Stock Psycho, sending subscribers email alerts under the Darth Trader alias as well (both entities operated by Focus Media as per their disclaimers), touted the company on Feb 28 and came back the next day to tell people how well his pick had fared. The emails tout the sector ENVS works in – electric and hybrid electric vehicles – citing the enormous potential of the company and the incredible possibilities ahead.
A reality check with the latest quarterly report available for the period ended September 2012 yields the following numbers:
- $108 thousand in cash
- $1.0 million in revenue for the period Jan-Sep 2012
- $4.7 million in let loss for the period Jan-Sep 2012
- $155 million in accumulated deficit
Those figures speak well for themselves, it seems. The company was delisted from the NYSE MKT late in 2012 – a fact that the pumpers somehow view as an advantage. The same 10-Q report informs that the company had trimmed down over 80% of its workforce in 2012, in an effort to contain costs and offset failing revenues, explained with “continued delays in industry adoption of EV technology”.
Promoter The Stock Psycho seems to be trying to improve a track record of failing paid pumps, running the advertisement campaign on ENVS for no compensation, in cash or shares. A recent pump run by The Stock Psycho on Primco Management, Inc. (OTC:PMCM) saw the promoter pocket $200 thousand in compensation as the stock tanked horribly within a day and kept sliding, currently sitting nearly 80% below the pump levels.
After spiking and slowing to a close of $0.089 per share, ENVS dropped over 42% on Friday. The pump moved like most smaller promotions do – a single-day spike on huge volume – movement that reverses on the following days as the stock price goes back to its pre-pump values. Investors are advised to do their own due diligence and never trade on recommendations that land in their email.
