Eco Science Solutions Inc (OTCMKTS:ESSI) is a penny player that we think does not exist in any particular market niche. That’s really the key point here. The company doesn’t really have any role in the marketplace, which is why we became so bearish on the stock back in February. We were actually bullish on the name last Fall, but grudgingly, and merely on the basis of investor relations, float size, and technical momentum. It amounted to saying, it’s not time to short it yet.
Well, now it probably is. Are there new catalysts? Sure, there are. But let’s take a closer look to check on the degree to which they might impact actual operational success on the financial side of a business. The most recent example of a “catalyst” for the company is its announcement that it has signed a Sponsorship, Content Development and Licensing agreement with Roaring Lion Tours, Inc. to develop unique educational content that brings awareness and education to the alternative medicine category. Try to even imagine how this might impact the bottom line. Go on. I dare you. Not gonna happen.
Eco Science Solutions Inc (OTCMKTS:ESSI) is “a technology-focused company that provides solutions for the health and wellness industry. From enterprise software solutions, entertaining and useful content generation for mass distribution to consumer apps for daily use, the Company develops technical solutions that empower enthusiasts in their pursuit and enjoyment of building eco-friendly businesses and living healthy lifestyles.
Eco Science’s core services span business location, localized communications between consumers and business operators, social networking, educational content, e-commerce, and delivery.
The Company’s licensed e-commerce platform enables health-and-wellness enthusiasts to easily locate, access, and connect with health-and-wellness businesses and like-minded enthusiasts, and to facilitate the research of and purchasing of eco-friendly products … anytime, anywhere.”
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As noted above, the company has been putting out press releases that don’t seem to have any tangible relationship with future operational success. Many of these seem to be related to things that Stephen Marley is involved in. The latest example is no deviation from this trend.
“It is important to me and my family that we continue to educate everyone on all of the wonderful health and healing benefits of the cannabis plant,” said Stephen Marley, founder of Roaring Lion Tours, Inc. Mr. Marley continued, “I like what Eco Science stands for and see us working together to get the word out and educate people about how to best medicate their minds and bodies … all through a combination of music, videos, and technology.”
“There is a continuing need to bring awareness to the benefits of medical marijuana as a key category in the alternative medical health industry,” stated Jeff Taylor, Chief Executive Officer of Eco Science Solutions, Inc. Mr. Taylor continued, “It is thrilling to be working with Stephen Marley and the team at Roaring Lion Tours, Inc. to fulfill our ongoing commitment in creating unique content that we can marry with our technologies to educate and inspire the world about alternative medicines.”
Recent action has seen 34% piled on for shareholders of the name during the trailing week, but that move comes in the context of a larger bearish trend. The situation may be worth watching. ESSI has evidenced sudden upward volatility on many prior occasions. Furthermore, the stock has registered increased average transaction volume recently, with the past month seeing 70% beyond what we have been seeing over the larger time frame.
Traders should note this as important given the stock’s tight trading float of under 15M shares. One is wise to respect the dynamic this may create — a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.
Currently trading at a market capitalization of $108.8M, ESSI has virtually no reported cash on the books, which must be weighed relative to about $662K in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point, and we would imagine it will always be. We will update the story again soon as developments transpire. For continuing coverage on shares of $ESSI stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!