After weeks of upward movement on the market fueled by promotions, the stock of El Capitan Precious Metals, Inc. (OTC:ECPN) is heading down again. The last promotion took place last Tuesday as it was the day on which the price reached $1.29 – a level seen for the last time in 2006. Over the course of the next few days, a steady decline followed and the last session closed at $0.82.  
Now, it is worth-mentioning that although promotions took place on a regular basis for this stock, they cannot serve as a primary force for increasing the stock price. Yet, it has followed a pattern of sustainable growth last year. On the other hand, one should not ignore the fact that the company has not generated any revenues up-to-date. Investments made on the market are made based on forward-looking statements released by the company. Such statements typically hold much more uncertainty than positivism. Currently, the company focuses all efforts on the El Capitan Project – a property that is in the exploration-stage. A closer look at the latest SEC filings of ECPN reveals the following that there have been studies regarding the future potential of the project. The results look promising on the one hand, but they also indicate that the feasibility of the project is not yet confirmed. Mining has thus not been, and may never be, established.
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Another recent development for the company is the completion of the merger with Gold and Minerals Co., leaving ECPN as the sole owner of the El Captan property in New Mexico. Which, in terms, facilitates another plan of the management of the company. As mentioned on their website, the net result of the above actions is to facilitate a sale to a major mining company. Which, again, brings more uncertainty than positive notion. After all, for a project to be appealing for an investor the feasibility and return of investment should be first backed up by facts and data. As mentioned above, there is no clear result as to the profitability of El Capitan Precious Metals projects. In this aspect, there is no guarantee that the price would keep its current levels now that promotions are over. One thing is sure though – it is high time that mining activities take place so that revenue is generated.
