EcoBlu Products, Inc. (OTC:ECOB) spiked back on May 23 and has been trading more actively ever since.
Yesterday, ECOB closed 17.7% up at $0.1589. The volume also increased and reached 758 thousand for the day.
The spike happened on the day ECOB published their latest 10-Q and issued a PR about an order for their Red Shield coated lumber. In that session the price broke above the 50- and 200-day MAs.
The stock has been generating volume and building up momentum for about two weeks now. The climb received some support through two more PRs concerning other orders.[BANNER]
Those announcements could give shareholders hope about the future of ECOB, but they don’t say what the orders would mean for ECOB financially. The exception is the PR from May 23, which said the order was worth more than $260 thousand.
If so, that could have been a significant event for ECOB. The latest report showed the company has begun to generate revenues, which were hardly significant and ultimately resulted in a loss from operations of approximately $1.14 million.
In addition, for the first quarter of 2011 the issued and outstanding shares of ECOB have increased from 95 million to 177 million. This dilution rate doesn’t seem to bother traders too much presently, but if it continues it may prove to be a problem.
