Yesterday, Energy Edge Technologies Corporation (OTC:EEDG) was supposed to get pumped by a one-day investor awareness program. The initiative, which amounted to $15 thousand, however, ended up being a total waste of time and money.
Instead of soaring high, EEDG took a deep nosedive during the latest trading session which took place on Sep. 26. In the end, EEDG shares almost halved their value depreciating 40% to a one-year bottom of $0.042 per share. Thus, the only boost that the paid promotion actually managed to cause was in terms of volume as more than 744 thousand shares of EEDG stock changed hands, marking a new 52-week high.
The dismal failure of the fifteen-thousand-dollar advertising campaign is even more discouraging due to the fact that EEDG did not pass beyond the opening price of $0.07, which in fact was the closing price on Friday. So, even if you got in during the first fifteen minutes of yesterday’s session, you must have been left disappointed with the lack of any positive price movement.
In the light of everything mentioned above, it is no wonder that the prospective impact of the brand-new press release dated Sep 26 turned out to be slim to none. Actually, if you take a look at EEDG’s past PRs, you will easily notice that more often than not they do little to lift EEDG stock price.
EEDG recently filed a full-on 10-Q report for the second calendar quarter of 2011. As of Jun. 30, 2011, the balance sheet contained:
- minuscule cash reserves of some $14K;
- working capital surplus of $300 thousand;
- net profit in excess of $72 thousand as compared to a loss of $390 thousand incurred in Q2 of 2010.
At first sight, EEDG’s financial state does not seem bad. However, you should not forget that almost
75% of the company’s current assets, i. e $767 thousand, are contract receivables and EEDG is currently unable to rely on these assets in the immediate future.
