Mike Statler Hasn’t Given Up on Ecrypt Technologies Inc (OTCBB:ECRY)
After teasing his subscribers (or “boys and girls” as he likes to call them) for a while, Mike Statler, the fictional co-editor of Stock Tips, finally revealed that his newest pick is Ecrypt Technologies Inc (OTCBB:ECRY). This happened after the closing bell on November 20 and it’s fair to say that plenty of people had some high expectations for the (reportedly) $5.1 million pump.
Things weren’t off to the worst of starts when the ticker gained a total of 150% on Friday. The excitement was carried through the weekend and Mr. Statler certainly helped when he said before the start of Monday’s session that ECRY could reach $1 per share. The ticker added another 8% to its value and climbed to $0.36, but suddenly, Mr. Statler went suspiciously quiet.
In the meantime, the British Columbia Securities Commission informed ECRY‘s management team about the pump and the officers decided to act before it’s too late. They issued a press release on Tuesday with which they said that they are aware of the promotion and that they have absolutely nothing to do with it. They advised investors to proceed with caution and to look for reliable information only through the company’s official filings (something we’ve been talking about since the very beginning).
Not surprisingly, the ticker took a beating. In a matter of six and a half hours, ECRY‘s value shrank by a whopping 26% and the stock finished the second session of the week at a little over $0.26 per share.
Imagine at this point that you are in Mr. Statler’s shoes. People haven’t heard from you in two days and some of them have already lost more than a quarter of their investments. What would you do?
Would you apologize to your subscribers about the mess? Or would you simply keep quiet until the whole thing blows over?
Mr. Statler took on a third approach. A couple of hours before yesterday’s opening bell, he informed the “boys and girls” that he has actually been sending emails the whole time. Apparently, all the alerts have ended up in the spam folders. He said that he is still supporting ECRY and that according to him, the 26% drop from Tuesday was caused by an attack from short sellers. No word was mentioned about the press release from the management team.
Did people believe him? Apparently, not in the least.
ECRY took another heavy blow yesterday and incinerated 29% of its market cap. It is currently sitting at just under $0.19 per share which commands a market cap of around $24 million.
Most likely, a few questions have popped up in your mind while reading this: What will happen next? Will Mr. Statler continue with his efforts? Will he help ECRY recover some of the lost ground? Or will more money spent by “boys and girls” go down the drain?
Tomorrow’s session should give us some conclusive answers.
While you’re waiting, you have the time to do a few things. You can open your spam folder, for example, and check if Mr. Statler has indeed been sending alerts on ECRY while it was falling like a rock. If you find his emails, you can decide whether you should whitelist his address, or whether you should leave things as they are.
