Yesterday, El Capitan Precious Metals, Inc. (OTC:ECPN) moved back up after a recent slump. The stock has been going up and down for a while now, and most of the significant movements happen with no news to base them on.
After a little over a million shares had been traded, ECPN closed at $0.64, 10.34% up. While there haven’t been any new developments announced, it is not unusual for ECPN to make such a move.
The company runs mostly on conviction and belief. The company proclaims its El Capitan project to be of great value, but hasn’t been able to make a dime. This shouldn’t really be a problem since the company’s plan is not to operate a mine, but rather to sell the project.[BANNER]
The company has managed to spend millions of dollars so far, and the frustration of some investors is to be understood. Additionally, ECPN is no stranger to dilution. On top of that, in this case we’re talking about serious dilution. Since the end of 2010, the number of shares of ECPN common stock has more than doubled.
The latest 10-Q shows ECPN is running out of money again. This, of course, means more dilution one way or another, but for believers such things don’t seem to matter. Indeed, if the claims made by the management over and over again turn out to be true and at some point ECPN manages to sell the property, they could get some return. But there is no guarantee such a thing will ever happen.
