Few OTC companies have been so prolific in PRs as El Capitan Precious Metals, Inc. (OTC:ECPN) recently.
Indeed, ECPN has issued 3 updates in 3 days! Yet, the company has failed to make any breakthrough on the stock market. On the contrary, the impact of these PRs can be best described as slim to none. Yesterday, in particular, ECPN stock lost 1.3% in value, clocking in at $0.76 per share. The volume reached 342 thousand, which is a pretty moderate score for the company.
Prior to the session, ECPN released the results of the lab tests carried out on its El Capitan project site. In a nutshell, these results confirmed what previous tests had indicated, namely, significant silver values. However, investors gave a pretty lukewarm response to the news, as seen from the chart. Neither has any stockholder bothered to organize a promotional campaign in support of ECPN stock.
At present, ECPN’s primary asset appears to be the New Mexican El Capitan property. The company has not acquired any other precious metals sites yet. As it seems, managers have now put all corporate eggs into one basket.
As a regular SEC filer, ECPN occupies the OTCQB marketplace. In this respect, the company recently filed a fresh 10-Q for the first calendar quarter of 2011. According to the unaudited balance sheet, ECPN finished the quarter with:
- $390K in cash;
- negative working capital of $55 thousand;
- quarterly net loss in excess of $1.2 million.
The company has evaluated its mineral property investment at $178 million and has yet to prove whether this evaluation resonates with the real value of the El Capitan project.
