E-Waste Systems, Inc. (OTC:EWSI) may have an active session today with the start of a promotional campaign and a couple of news releases.
Over the last several trading sessions volume has been significantly higher, while the price dropped to a new low on Monday. Yesterday EWSI recovered 3.33% and closed at $0.31 per share.[BANNER]
With the RSI dropping below the 30 mark, the stock may be ready for a promotion, and as I mentioned there is a brand new one.
The promoter has been paid $125 thousand to pump EWSI by an unnamed third party. The campaign will last more than one day, although in most cases the action takes place on the first day of a promotion.
Today’s performance may also be affected by the press releases issued by EWSI. The first one served as an update on the current situation and near-future plans of the company, and the other one concerns the election of Chairman of the Board.
While there are some factors which may suggest it’s a good time for a paid promotion, there are also others.
For starters, the financial state of EWSI can hardly support a market capitalization of $30 million. The company has some liquidity problems and since its business isn’t fully established it’s not clear when, if ever, EWSI may turn profitable.
Additionally, previous paid pumps have had a disastrous effect on the price of the stock. The increased volume in recent sessions could be someone front-loading, but there is no evidence to support such a claim. Even so, EWSI could be an interesting stock to watch today.
