the stock soared 41.70% on the market and its traded volume exceeded 1.7 million shares for the day.The strangest thing here is that no particular reason for the up move can be found. Ecosphere has not released any news about its activities recently, apart from its EF60 technology and the new appointments in the company.
According to the records, on Dec 23 the board of directors of ESPH awarded stock options to its new CFO Adrian Goldfarb and COO Sir Michael Donn, exercisable at $0.48 per share over a five-year period. Except for this news, no more announcements came up by Ecosphere these days. Though, the stock is going up progressively, which provoked a huge discussion on investorshub.com message board. The discussion concerned mostly the latest 10-Q report of ESPH.[BANNER]
According to the filing, the company has converted all of its remaining convertible debt as $2.5 million warrants were dispensed and also the revenues have increased. Traders commented on the “Outperform rating” of ESPH and the natural gas reserves in Texas, however, nobody could say if the company has patents for the producing wells. So, at this point a new bullish trend looks uncertain.
Ecosphere Technologies, Inc. is a water engineering and environmental services company. As of 30 September, 2010 ESPH has registered more assets than liabilities on its balance sheet, however, the accumulated deficit of the company exceeds $106 million. Also, the stockholders’ deficit has reached over $1 million and the loss from operations has significantly increased.
Assuming these facts, Ecosphere’s continued existence is dependent upon its ability to generate sufficient additional revenues to support the operations. Thus, ESPH should either find additional financing for its projects, or find a way to get profitable.
