Everlert, Inc (OTCMKTS:EVLI) Gets Pumped by David Cohen
Everlert, Inc (OTCMKTS:EVLI) has never really been the most consistent stock on the OTC Markets, but we should note that since the beginning of 2014, its performance has been particularly turbulent.
EVLI started the year at around $0.40, ran to nearly $0.60 on the very next day, but after a few sessions, it dropped below the $0.20 mark. It recovered nicely and made a rather spectacular run which culminated on February 11 when the ticker closed the session at $1 per share. Once again, however, it failed to sustain the higher prices and in a matter of just two days it dropped below $0.30.
The behavior has been just as erratic since then, but it can be explained to some extent by the low volumes. Yesterday, however, EVLI managed to shift nearly 1.9 million shares. The price also jumped up by 17% and the ticker closed the day at $0.287 per share.
This is partly due to the press release that hit the wire about fifteen minutes before the opening bell. According to it, EVLI‘s subsidiary, Totalpost USA, will launch a clever X-ray screening system in the US really soon. The announcement also tells us that the device has been installed in London’s Heathrow airport and that they expect it to be a huge success in America.
At this point, we should probably note that, at least in terms of financials, EVLI looks like one of the more solid penny stock enterprises out there. They have a license agreement with a UK-based company called Totalpost PLC and the latest report shows that they have managed to realize some revenues out of it. Here are the figures as of September 30:
- cash: $3,584
- current assets: $165 thousand
- current liabilities: $190 thousand
- revenues for the first nine months of 2013: $582 thousand
- net loss for the first nine months of 2013: $167 thousand
While not perfect, the statement is a lot more solid when compared to the ones presented by other OTC listed companies. Before you get too excited, however, you need to consider one or two things.
Yesterday’s volume spike wasn’t caused by the press release alone. There is also an active promotional campaign currently running for EVLI and while it isn’t as huge as the one for Well Power Inc (OTCBB:WPWR), it is still quite big. In a matter of just two days, we have received more than fifty alerts over the email from a range of newsletters. The total budget according to our database amounts to $67 thousand and David Cohen and Investor Trendz are the most prominent outfits taking part. They pocketed $30 thousand each.
The paid pump certainly adds a huge layer of risk to a potential investment, but some of you might think that since EVLI is a solid, revenue-generating enterprise, it will manage to weather all the difficulties. You might be right, but there are still some things well worth considering.
Once you do a bit of research on the company and the people behind it, you’ll spot some interesting facts. EVLI‘s CEO, for example, is called Robert Hymers and you can see from this article that a person by the same name was named as defendant (alongside former baseball star Lenny Dykstra) in a lawsuit back in 2011. The document shows that the allegations are quite serious.
Yet another thing worth bearing in mind is the stock issuance that took place in the past. We read in the latest financial report that back in July an unnamed shareholder converted 5 million preferred shares into 10 million common ones. Between December 2012 and May 2013 EVLI turned some notes into common stock at conversion rates ranging from $0.005 to $0.05 per share.
It’s clear that there’s no shortage of people who can benefit from the promotional campaign and the expected rise in the price that it might bring. That’s why, doing a lot of due diligence and being extremely careful is absolutely essential.
