EVSI-logo.gifIt has been more than a month now since the beginning of 2011, and the stock of Envision Solar International, Inc. (OTC:EVSI) still keeps building value on the market. The truth of the matter is that while it is still early to talk about sustainable growth on the stock market, it is clearly visible that a strong positive trend exists. Several factors are usually responsible for the above.
Last Friday is a good example. One of the major catalysts was in place, thus shareholders enjoyed a very positive end of the week. The numbers’ story – 641k shares were traded, price jumped another 15%, closing at $0.72. If you think this is a modest increase, keep in mind that traders who bought the stock in January are almost 100% up, while those who bought it last September are heading for a 250% increase in the value of the shares owned by them. EVSI-21.02.11.png 
Now, as mentioned, a strong catalyst had to be in place.  On Friday, it was the company announcement about a new contract with a utility company for the design and engineering of solar structures. Much like previous announcements from January and last year, the stock accumulates value, but there is also a counter part.
Reviewing the company on a larger scale, it is not all positive news and a rising share price. There is another clear pattern, which investors have to be aware of. It repeats itself on a regular basis. During strong periods, Envision releases information about new partnerships, contracts etc. This gets picked up by traders and media, the word spreads, and upward movement on the stock market takes place for weeks, even months. To sustain it, alerts and stock promotions also take place. Unfortunately, as they cannot last forever, a sharp decrease follows at some point. [BANNER]
The first six months of 2010 are a good example of the above. The price jumped to almost $0.7 per share, before crashing back to $0.25. Considering that this time the $0.7 barrier is surpassed, you have to pay close attention as the stock might be on the verge of another free fall.
Keep also in mind that financial stability is still a thing of the future for Envision. According to the latest 10-Q report, this is what the company accounts for in the first nine months of 2010:
  • net loss of $169k;
  • accumulated deficit of $19 million;
  • current liabilities of $3.8 million;
  • revenues of $169k;
Until the above numbers change to much more positive and inspiring values, the future of Envision, thus the future of your investment, would be one of uncertainty and risk.