ENGY A Contrarian View...
Following are my opinions of ENGY.OB, please note that I am a shareholder and as such my views and opinions should be considered in that light. I consider ENGY highly speculative with very real potential for loss. Perform your own due dilligence and if in doubt consult with a professional....
Most times I only hear about a stock trading at or near its highs...that's when they are most often touted. I prefer to buy low...but stocks trading at or near their lows tend not to be getting alot of attention. The IDNWs and DTMGs of the OTC world weren't getting much (if any exposure) back when they were trading at or near their lows...but somebody was buying them when they were down there.
Will ENGY eventually garner some attention and the favor of investors? I don't know for sure, but I'll share the reasons why I consider it a possibility.
Back on June of this past year the CEO/CFO/Director of ENGY resigned. Read the appended letter of resignation dated June 5th 2003 from this July 18 8K filing while looking at a chart covering that time frame. http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001052918%2D03%2D000177%2Etxt&FilePath...
In the letter some very strong wording was used, including:
"It is my opinion that the shareholders of Enviro-Energy Corporation are being ignored in the pending transactions. I also believe that these pending actions are in part being taken to cover up illegal acts by control people within the Company."
How did this affect the trading of ENGY back on and around June 5th? Not much it would seem...I show the share price being stuck right around .009 to .011 cents per share...pretty much where it is today.
Of course the filing didn't come out until July 18th however I assume there must have been at least some shareholders who were aware of the departure of the company's CEO.
After the filing the stock traded downward on very light volume. When the 8K was filed July 18th I show 20 day average volume at about 1.4 million per day. By the beginning of October I show 20 day average volume all the way down to around 250-300K.
On Oct. 16 and 17 my numbers show ENGY as having traded below 1/2 a penny. Then on Monday Oct 20 my numbers show over 19,000,000 shares trading and the PPS going up almost to a full cent. What caused this sudden spike in volume?
I still don't know, I saw no news, promotion or trading alerts at all. I'm speculating that buyers rushed in and possibly took out every outstanding limit order on the books for some reason...but that is mere speculation.
The recent trading has been very curious as well in my opinion. While some might have been worried about the notification of late filing on November 14 it sure didn't slow down buying as evidenced by the trading that day.
They did file their Quarterly on November 20, and the numbers were less than spectacular...but I wasn't expecting much from a stock trading around a penny. Besides those numbers are for the July - September 2003 time period and that is in the past. I'm hoping that my opinion of the trading pattern here portends something positive coming in the future.
I'd appreciate hearing any and all thoughts, both fer and agin. As I said, this is very speculative and I've only invested risk capital. I consider it a very real possibility that I may lose some or all of my investment.