For this to happen, there is a catalyst, of course. Yesterday, the company announced that it has competed the agreement to acquire Caddo International. The result – 140k shares exchanging hands, but also a noticeable decrease in the stock price, the session closing at $0.145 per share. To be precise – a 54% decrease. Just a week before that, sessions would close around $0.25 per share. What is more, out of the 140k, 35k were due to short-selling activity. And as far as the start of today`s session is concerned, the negative trend is not yet to get stopped.
Now, what the closing price this Wednesday would be is yet to see. There is, however, a clear catalyst for the increased trading activity from the very beginning of the session – promotions. Yesterday, $2,500 were paid for this newsletter to hit mailboxes. It includes interesting information for the company, yet, as usual for promotions, does not include much data from the balance sheet of the company. Data like that from the last 10-Q of the company covering the first 3 months of 2011: [BANNER]
- $14k in cash;
- $208k in total current assets;
- $5.2 million in total current liabilities;
- $33 million in accumulated deficit;
- $3.1 million in net loss;
Indeed, not the data to include in a promotion, and perhaps one of the reasons for the less optimistic performance of the stock over time. In terms, uncertainty describes best the short-term potential of EGPI as an investment opportunity. Whether this recent acquisition is a step in the right direction is yet to see.
