Poly Shield Technologies Inc (OTCBB:SHPR) Soars to a 52-Week High

Poly Shield Technologies Inc (OTCBB:SHPR) registered an extremely exciting session yesterday when it jumped by no less than 22%. The share price reached a 52-week high of $1.15 while more than 975 thousand shares (almost twenty times the average volume) changed hands.

As impressive as it is, yesterday’s spike is somewhat difficult to explains since there weren’t any new announcements, filings, or anything immediately obvious to increase the interest, but it’s clear that even without it, SHPR seems to be performing admirably. As an added bonus, there aren’t any paid promotions.

All in all, it would appear that the ticker is moving solely because investors trust the business plan and the people running the company. Having read through the description on their official website, we can see that there’s definitely some things to get excited about.

According to SHPR, their flagship product, the DSOX-15 fuel purification system is the first economically feasible solution of its kind and has numerous advantages over its main rivals. They still haven’t installed any units but press releases and 8-K forms inform us that negotiations are under way with some large shipping companies and that sales should start soon. In the meantime, SHPR have secured a line of royalty revenues related to their previous business which means that the latest financial statement doesn’t look as bad as the ones presented by other small cap companies.

That said, it’s not perfect. Here are the figures as of September 30:

• cash: $357 thousand
• current assets: $892 thousand
• current liabilities: $2.5 million
• quarterly revenues: $333 thousand
• quarterly net loss: $274 thousand

Investors and shareholders will need to wait for the start of DSOX-15’s sales and see if the revolutionary fuel purification system will be able to turn SHPR into a profitable enterprise, but in the meantime, they might want to consider some other facts.

Back in February, the company acquired Ecolutions, Inc. – the privately-held venture that owned the fuel purification technology. Mr. Rasmus Norling, Ecolutions’ founder, was appointed as SHPR‘s CEO and an employment agreement was signed. Mr. Norling was awarded a base salary of $180 thousand per year and he was also issued 154 million common shares which, according to the 10-Q, are held in escrow and will be released upon the achievement of certain milestones.

On September 9, however, Mr. Norling decided to step down as the company President and CEO and focus on his work as Chief Technical Officer. A person by the name of Brad Eckenweiler took the helm and that’s where things get just a little bit sketchy. The changes in the management team were reflected in an 8-K form which tells us that Mr. Eckenweiler has been in charge of another publicly traded company in the past – MidasTrade.com, Inc. (MIDS). MIDS is currently on the grey market and the reason for this is a temporary trading suspension from 2012 due to questions regarding the accuracy of statements made by its management team. If you do a bit more research, you’ll see that Mr. Eckenweiler also had some problems with the British Columbia Securities Commission back in 1991.

Will this compromise SHPR‘s future? Only time will tell, but we reckon that keeping Mr. Eckenweiler’s previous endeavors in mind is absolutely crucial when making your investment decision.

While SHPR was gaining ground during yesterday’s session, Makism 3D Corp (OTCBB:MDDD) was losing it. The effects of the $2.75 million promotion came in sooner than expected and MDDD lost a whopping 41% in just six and a half hours of trading while shifting more than $6 million worth of shares.