Yesterday, more than 181 million shares of EGPI Firecreek, Inc. (OTC:EFIR) changed hands. The excitement seems to be over some letter of intent.
In what was the most active session EFIR has had for a while, it managed to close up 77% at $0.0016.
On Tuesday, EFIR issued a press release announcing a Letter of Intent to prepare and conduct drilling programs with Cubo Energy, PLC – a U.K.-based company which for some reason doesn’t have a website.[BANNER]
There are some disturbing details in EFIR’s picture. For one, on Mar. 30 the company filed a notification it would be late with its 10-K. Usually not the biggest of problems for OTC traded companies.
However, right now there is a lot of hype around the supposed new developments and the latest financial report by EFIR showed the company had approximately 51.7 million shares outstanding and the recent volumes suggest that it is very far from the actual current number.
Historically, EFIR hasn’t been able to break even from its operations, but has been very effective in massively diluting its stock. The company has two relatively recent reverse splits – a 1 for 50 in 2010 and a 1 for 500 in July, 2011.
This makes the current discrepancy in the trading volume and the supposed number of outstanding shares even more suspicious.
The current market performance of EFIR seems to be fueled by the press releases issued by the company, even though they don’t provide a lot of details, and aren’t definitive in nature. Traders may do well remembering some stocks are sub-pennies for a good reason.