After more than five months of complete silence eCare Solutions, Inc. (OTCMKTS:ECSL) finally issued a new press article on October 31. In it the company revealed that their alternative fuel Singular 96 was certified by the Olsen Ecologic Engine Testing Laboratories and that this could help them get approved for sale in Florida and California.
The excitement caused by the message was enormous. ECSL went on and registered ten straight days of gains without a single session in the red. Their share price rocketed from a little more than a dollar to a close at $2.17 this Monday. On that they ECSL also announced that they were approved for sale in Florida.
Although rather encouraging this new PR didn’t stop the investors from taking profits during Tuesday’s and Wednesday’s trading. Still the corrections were minimal and the stock kept almost all of its recent price gains. And indeed, yesterday it once again surged up the chart and closed 16% higher at $2.36. Will the ticker have the strength to challenge its 52-week high of $2.50 though?
Well, there certainly are a few red flags around the company that could prove detrimental to their stock performance. First of all, ECSL currently has the PINK Limited Information sign on their OTCMarkets profile because they still haven’t filed the financial report for the quarter ending September 30. The report should have been submitted by November 15 with a possible 5 day extension if a notification of late filing was filed (it was not). This means that there is no way of knowing when the financials will be finally completed.
Until then investors have to rely on the annual report for the fiscal year ending June 30 and ti shows some rather discouraging numbers:
• cash: $0
• current assets: $496 thousand
• current liabilities: $129 thousand
• yearly revenues: $647 thousand
• yearly net loss: $1.3 million
In addition investors should also take into consideration the fact that through the years ECSL has issued around 5.5 million shares as conversion of approximately $1.8 million in debt. The shares were priced between $0.05 and $1 but at the current market price they all offer their owners opportunities for massive profits.
The excitement around ECSL should continue for now with investors anticipating new PRs but this also means that the stock’s volatility will also remain heightened. Do you due diligence, weigh all the risks and only then commit to any trades involving the ticker.
In early trading today the stock is crashing down currently sitting over 9% in the red at $2.14.