Here's my opinion on where MYEC is heading.
Warning, this is long. Brevity is not my specialty
First things first, let me give you an idea of where I'm coming from. My first MYEC buy was at .0025 and I have been swing trading the volatility since. I've made some of my biggest gains this year with MYEC, and now I am holding shares at a substantial loss. I know this stock pretty well. My analysis is not intended to sway people either way. Take it as you will.
I initially bought into MYEC because I believed it was undervalued. When this stock was running up to .08, I kept mentioning that the market cap was becoming unsustainable. The company was valued at over $200 million and moved mostly on hype. I took my gains and let the stock consolidate a bit. As the stock dropped back to the .03-.04 range I started trading it again.
Now, let's address this drop. This drop really shouldn't come as a major surprise. Remember, this stock has been in a downtrend since April and we haven't had a real trend reversal yet. Nothing can run forever. Look at the charts of other "hot" stocks that ran exponentially in the Feb-April range; the charts all look similar (ERBB, MINE, GRCU/TTDZ, HEMP). I'll admit that this has been dropping faster than I expected, but that's just part of the game.
From a charting perspective, MYEC looks pretty bad. There's no strong support levels above .01 and it is trending downwards (lower lows, lower highs). There's no real reason to expect a trend reversal quite yet, although it's not impossible.
From a fundamental perspective, the company is still moving in a good direction. In fact, that is the only reason I'm still holding my shares at a loss. Big things are always expected with MYEC. The financials have been constantly improving and the company is doing some nice restructuring. When the stock ran up, there was a PR almost every week. There was no way that was going to last forever. Even if Ed were releasing PRs every week right now, it wouldn't have the same effect. It is summer right now and the OTCs are slow. Look at a chart and you'll see the more aggressive downtrend starts in June.
If you got into this stock based on the chart, you should have been out a long time ago.
If you got into this stock because you believed in the company, then there's not much reason to be questioning your investment based on the price action. I'm not saying MYEC is an amazing company, and the recent drops are definitely unfortunate, but a fundamental investor's opinion of a company shouldn't fluctuate with price action. Yes, there have been delays with product launches, PR campaigns, etc, but the main reason this stock is pulling back is that it ran so high in so little time. It would have been almost impossible to sustain that upward momentum. That doesn't mean that MYEC is a scam or a bad company. The price drop is triggered by traders and emotions, not the company.
So, what happens now?
My guess is that MYEC will still need to pullback some more and test the .01-.012 area a bit. I hope it does not go sub-penny but I wouldn't be surprised if it did. The good thing is that this price range puts MYEC in a place where it is close to being undervalued. You couldn't make an argument for MYEC being undervalued at .08. You could make one for it being undervalued at .01 and below pretty easily.
People are panicked right now, so the price action is not a reflection of people's opinions of the company, but more a reflection of their intense emotions.
Do I think this stock will run back to it's previous highs anytime in the near future? No.
Do I think this stock will bounce again in the near future? Yes.
Do I think it can reverse trend and run again? Maybe.
Some things to think about:
To those worried about VFIN, know that he was selling shares in a similar manner since sub-penny and the stock still ran. VFIN isn't solely responsible for this drop either. Keep in mind that there are investors still holding millions of shares from the sub penny days. They can still get out for a nice profit in these price ranges. There's also the panicked bagholders who can choose to sell at any time.
The chart is basically bottomless right now (until we go back to subs). You can keep trying to guess the bottom, but there's a good chance you'll get burned. Also keep in mind that the move back up will probably be slower. A lot of people will want to break even, take smaller losses, or claim profits. Expect profit taking on every bounce.
A lot of news is expected. Financials by Aug 15, product launches, etc. Revenues jumped 359% from Q3 2013 to Q4 2013 and 280% from Q4 2013 to Q1 2014. Progress is happening. MYEC is expanding their team and infrastructure. Be realistic with your expectations.
Investors/traders need a reason to be bullish. Right now, MYEC is bearish. Understand the trend. Don't expect a run over night. This will probably need to grind down a bit more first. Be on the look out for a trend reversal before expecting major change. Remember progress is happening. It may not be happening as fast as you hoped, but its still happening.
MYEC shareholders are in panic mode right now and people are going to take advantage of that in order to get shares for cheaper. Don't be influenced by blatant negativity.
Remember why you got in the stock. If you were proven wrong and your opinion has changed, get out. If you still stand by your opinion, stay in. Simple as that.
Focus on the facts and avoid theories. Remember, you actually know very little about this company and Ed Starrs himself unless you have seen the operation and met Ed. Focus on the information you have available and make decisions accordingly. Don't expect Ed to be some savior here.
News 
Market Data 
Discover 
