The second promotional disclosure for EGOC was made yesterday. According to it, a non-controlling third party, which is also a shareholder of the company, has paid $50,000 for the promoting and advertising of EGOC stock. The first promotion has taken place at the beginning of June and was conducted by another promoter, who received at that time $25,000 again from a third party to hype the share price.
As seen on the chart, the two promoters provide some satisfactory results, as the low liquidity and almost no trading for EGOC allows to manipulate its share price through creating higher short-term demand. Yesterday, it seems that this is what happened. The stock jumped 64% and closed the market at $0.0164, making a somewhat too high market cap of $6.14 million for a company with no revenues, no proven operations and no cash.
On the other hand, EGOC has $2.6 million in liabilities, as stated in the latest available quarter report, submitted to the OTC Homepage. The company is not filing with the SEC since 2009, when its name was Dairy Fresh Farms, Inc. and the company claimed at that time to be in the business with dairy products.
Instead, EGOC follows consistently the practice to communicate its business plans to the investor community through press releases and of course the current plans are concentrated on the popular clean energy sector.
The latest press release from yesterday informed that finally a manufacturer has been selected for the “ExhausTek” and “IonTek” emission and energy saving technologies. These technologies are still patent pending, but the company reports “patents” with a value of $260,000 on its balance sheets. The other asset there is some property and equipment, valued at around $5,000.
Investors should be aware of the reasons behind the stock price moves of such a pink sheets company and should not assume they are based on some proven fundamentals.
