MyECheck, Inc. (OTCMKTS:MYEC) Crashes After Annual Report
At the end of last week the stock of MyECheck, Inc. (OTCMKTS:MYEC) managed to beat its previous record and posted a new 52-week high of $0.082 but the positive trend came to an abrupt end when the company filed its annual report. Monday’s session saw the stock remain relatively calm but it closed lower than its opening showing that momentum was shifting.
Yesterday MYEC plummeted right from the get-go. With the start of the session the stock plunged for the bottom and found itself dropping to $0.0455 in minutes. Although it was able to recover at least some of its value at the end MYEC had slashed 29% of its price and closed at $0.052. During the trading hours nearly 74 million shares got dumped on the market, close to 4 times higher than the volume from the previous session.
As we said the reason for the drastic reversal in sentiment was the annual report filed by MYEC on Monday which showed the following results:
- $65 cash
- $350 000 total current assets
- $480 000 thousand total current liabilities
- $439 thousand revenues
- $1 million net income
Well, the company did manage to end the year with a rather impressive bottom line which is definitely a rare sight in pennyland but the problem with the report is quite obvious – $65 in cash. Not to mention that the entire current assets of the company fall under the accounts receivable line.
Since the start of 2014 MYEC has been able to ramp up its operations and announced two licensing deals for the medical marijuana industry. The MJ-Pay app should launch in a month and a half according to the official website while last Thursday the license agreement with Itonis, Inc. (OTCMKTS:ITNS) was completed.
Coupled with the new deals in an another not often seen move MYEC‘s CEO decided to retire 1 billion of his shares for a total compensation of just $10 000, or $0.00001 for each share. This should dramatically improve the share structure of the company that at the start of February had 3 billion out of the 4,9 billion authorized.
The dilution of the common stock is more than likely going to continue though and just a month ago on February 28 MYEC issued 6 million free trading shares in order to decrease its debt by just $53 252, making the price for each share extremely cheap – $0.0088. Even after yesterday’s crash the company is still trading for more than 5 cents so the people owning the shares could reap some impressive profits.
Yesterday the stock of Itonis, Inc. (OTCMKTS:ITNS) also showed signs of weakness and closed at $0.0198 way below its opening price of $0.0217. United Treatment Centers, Inc. (OTCMKTS:UTRM) have fallen on hard times after the company failed to launch its media website last Friday. On Monday the PR that explained the delay propped the stock to a green close but its effect proved to be short-lived and yesterday the stock fell right back down again by 11% closing at $0.0082.
