EGPI Firecreek, Inc. (OTC:EFIR) declined 5.88% to $0.0016 yesterday. During the day, the stock heated up significantly, reaching a record high volume of 88 million shares. This figure is more than 10 times higher than the 90-day average.
The stock chart pattern reminds of a stock that is under the influence of a promotion. And indeed, after checking with the Hotstocked database it turned out that EFIR was promoted right at the opening bell. Yesterday’s newsletters were part of the campaign, which started on Friday last week.[BANNER]
The promoter was a website called 007 Stock chat, who distributed a newsletter to present EFIR in a most positive light. The promoter also implied that there are a lot of rumors about upcoming news. The eulogy of EFIR, however, was stimulated by $2,500, paid by a third party. The stock was also promoted by Moving Pennies, who were compensated with $4 thousand.
The last financial report of the company form November last year shows that EFIR is burning money at a very fast rate. Just for the nine moths ended November, 2010 the company has lost more than $4 million, while its total accumulated deficit is nearly $31 million.
With such a financial picture at hand, it is no wonder that EFIR has been steeply declining. A year ago the stock was trading at around $1, while at present its value has plummeted to $0.002. Therefore, once the effect of the promotion wears off, the stock can rely only on thin air for support.
