The Paid Pump Takes its Toll on Eventure Interactive Inc (OTCBB:EVTI)

Pennyland can be a treacherous place and we reckon that Eventure Interactive Inc (OTCBB:EVTI)’s performance from the last month or so serves as the perfect illustration of all the risks involved in playing OTC stocks.

It all started on October 8 when an entity called SeeThruEquity, supposedly after doing some research, published a report on EVTI and gave it a lofty $3.50 per share price target. Back then, the ticker was hovering around the $1.50 mark which means that if SeeThruEquity are right, the people who believed them and bought EVTI shares immediately could stand to cash in on around 133% in gains. Unfortunately, having seen what happened after the report, we can’t imagine that many people are ready to trust them at the moment.

The price target did create some stir and after a few green sessions, EVTI managed to climb to around $1.60. Then, however, it crumbled down and between October 23 and October 29, it managed to annihilate a mind-boggling 74% of its value.

This sort of horrific drop should serve as a big enough warning for all the people who think that heeding to advice published on the internet is a good call. That, however, wasn’t going to stop the paid pumpers.

Just two days after EVTI wiped out three quarters of its market cap, The Lotto Pick started touting the company. A few other newsletters joined the party during the following days and now, even Damn Good Penny Picks are on board. Overall, in a matter of less than a week we have received over thirty emails. So, how is the stock doing?

All the awareness did bring in some volume and we saw quite a bit of trading during the last three sessions. Unfortunately, the performance is far from impressive. EVTI managed to remain in the green between October 29 and November 3. On Tuesday, however, it wiped out all of its gains and yesterday, another 13% of the market cap was flushed down the drain. After hitting a 52-week low of $0.345, EVTI closed the session at $0.37 and, judging by early trading today, it might be in for some more hits.

But why is EVTI falling at such a rapid rate?

The truth is, once you take a look at the latest 10-Q, you’ll see that neither the $3.50 price target, nor the pumpers’ bombastic claims seem to be in line with the reality at the moment. We covered the pump from the very beginning and we mentioned that EVTI closed the second quarter of 2014 with less than $200 thousand in the bank, a working capital deficit of around $274 thousand, no revenue whatsoever, and a quarterly net loss of $6.1 million. We also noted that while the company has secured some financing, it is about to be done through the sale of common shares at a 20% discount.

All in all, there is no shortage of red flags that need careful consideration and that begs the question: “Why are the promoters still touting the stock as a great investment opportunity?”.

Simple – they were paid to do it. According to our database the total amount splashed out on the pump is hovering around $70 thousand. If anything, this should warrant even more caution.