MyEcheck Inc (OTCMKTS:MYEC) Climbs Above 2 Cents Per Share

Last week the stock of MyEcheck Inc (OTCMKTS:MYEC) managed to reverse its chart direction registering a single red session out of the last five. The uptrend was so strong that it pushed the stock to a close at $0.0215 on Friday. Investors have also shown increased interest and the daily volume for the session of 13.8 million shares surpassed the 30-day average for the company by more than three times.

Around an hour before the end of the session MYEC published a new PR announcing that NXR Global customers are now using MyECheck Electronic Checks as a payment method. NXR Global is network marketing company and a distributor of health & wellness and entertainment products. We will see if this announcement will be enough to sustain the positive momentum around the stock through the weekend.

MYEC has been plagued by delays and problems for quite some time. The company filed a Form 10 last October in an attempt to uplist and become a SEC reporting entity but they had to take down their application due to the fact that an audited financials for the entire 2014 were required. On April 8 the company resubmitted the Form 10 with the necessary information and is now waiting for a response from the Securities and Exchange Commission. An approval will most likely result in a major boost in confidence in the stock.

Before you get overly excited however let’s see what the company had to report as financial results for last year. As of December, 31, 2014, MYEC had:

• $51 thousand cash
• $487 thousand total current assets
• $1.8 million total current liabilities
• $952 thousand revenues
• $993 thousand net loss

Although the company experienced a massive increase in their generated revenues (for 2013 MYEC reported less than $90 thousand in revenues) it is obvious that they are far from becoming a profitable entity. The limited cash position and the working capital deficit of $1.3 million make the balance sheet even more depressing. According to MYEC they will need around $1.82 million for their operations during 2015.

Since the start of the year things seem to be falling into places though. Several clients have been announced with the most recent being Elite Tech Help, Boss Tech Support and the aforementioned NXR Global. Last Thursday the company released plug-ins for the ecommerce platforms WooCommerce and Magento. In a Facebook post MYEC stated that their apps will be going live in a couple of weeks.

Progress was also reported on the company’s attempt to recover 1.44 billion issues. Back in December a lawsuit was filed against four companies and on March 12 Seven Mile Securities, one of the parties named in the lawsuit, decided to return 275 million shares and they were cancelled. This still leaves MYEC with 3.8 billion outstanding shares.

Currently MyEcheck have a market cap of over $83 million, valuation that is grossly disconnected from the underlying fundamentals of the company. Even if the financials for the first quarter of 2015 show further improvement it is highly unlikely that they will be enough to justify such numbers. The volatility of the stock shouldn’t be underestimated, either.