At least that’s what Stock Guru sees. Indeed, Evcarco Inc. (OTC:EVCA) hasn’t closed in the red since Aug. 15, but one has to keep in mind that it is a sub-penny stock.
EVCA closed at $0.0052, representing a 20.93% gain on a 1.6 million volume. Calling this a break-out may be a bit of an overstatement. The stock didn’t even manage to trade consistently through the session and the last trade was about an hour before the markets closed.[BANNER]
However, a bit of over-the-top optimism is to be expected since the promoter has been paid for its services by a company which holds restricted common stock of EVCA.
Pushing EVCA’s share price up may turn out to be a very difficult task. The company has been losing both money and value for a while. The latest decline started with an interview with EVCA’s CEO Mr. Mack Sanders.
It is not that the interview revealed some gruesome secret. It just didn’t provide anything really inspiring and dramatically different than before. This was enough, however, since things so far haven’t turn out too good for EVCA.
Yesterday, the company published its 10-Q for the second quarter and it doesn’t look much better than the previous ones. The company is still generating insufficient revenues to cover its expenses and the resulting loss leads to more and more dilution to shareholders.
At this point, the outstanding shares of EVCA common stock are more than twice the number they used to be at the start of 2011. The recent increase in the authorized shares number doesn’t suggest this will stop soon. All in all, a break-out would be unjustified at present.
