Echo Therapeutics Inc fka ECTE

[ramad]

Based on the Echo's unusual high volume and price action without any confirmation it looked like a position being liquidated at any price.Under normal circumstances a thinly traded stock as Echo would not be liquidated by telegraphing the market their total size. The old motto prevails the tape never lies. Thereby it is very possible even though Echo will secure funding the key milestone of starting the clinical trials will be postponed by MTIA to a later date sometime in the first quarter of 2017 and approval 2nd quarter. I could give you a dozens of reasons why it could have been liquidated. One would be for tax purposes. Client needed losses to offset their gains. Secondly, many hedge funds end their fiscal year Sept 30th and they took off their position of Echo.

As shareholders are aware Echo does not have a working model of their new CGM. They only have the separate components which make up the moving parts of the latest CGM. No prototype currently. If MTIA decides to go forward with the new CGM for clinical trials it probably will start as stated above in the first quarter. MTIA business decision is twofold, wait for the new CGM so as they can commercialize the devise or role the dice if the the existing one will be sufficient to get CFDA approval. Its a major money decision because they are financing the clinical trials and will have to mfg the CGM for the clinical trials.

Which brings me to if the above scenario is right Echo will only be focusing on the new CGM. They will not need to hire a CEO and will have sufficient capital to get to the prototype stage. I am sure MTIA or investor will fund them in stages as they are making progress on the new CGM.

In conclusion Echo could be dormant with any news for a long period of time after they make their announcement when and if they get the needed funds and their plans and strategy going forward.

Their will be believers and non believers if they truly have a non invasive CGM that works. Postponements after postponements does not bode well. I would not be surprised if their will be lots of selling pressure do to tax losses.

The good news is that you can own 100 shares of Echo for less then it would cost you for an average meal with a glass of wine. How sweet is that. No pun in tended.
Everything would be mute if Echo does not close a deal for additional funding.