Eco Science Solutions Inc (OTCMKTS:ESSI) is a micro-cap play in the cannabis space that has seemingly defied gravity, spurred on by an apparent sense that its niche app business is positioned to disproportionately benefit from the California recreational legalization vote. We have been somewhat skeptical of this stock, but it has continued to perform, and now presents itself as one of the very few plays in the space that may be verging on a technical breakout to new recent trend highs well after the major catalyst (the vote) has come and gone.
Recent action has seen 93% added to share values of the name over the past month of action. The situation may be worth watching. ESSI is a stock whose past is littered with sudden rips. What’s more, the company has witnessed a pop in interest, with transaction volume levels jumping 110% above the longer-term average. Traders should note this as important with a float in play that’s very limited — under 9.4M shares. This type of thing is something to watch out for: a restricted trading float and a jump in trading volume can crimp supply and push share prices higher.
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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One of the main reasons this stock performed well in August and September was a very aggressive promotional campaign by the Money Street powered allegedly by a “weekly advertising budget ranging from approximately $25,000 to $150,000 to cover the costs associated with creating, publishing and distribution of advertisements.” However, to the best of our knowledge, that campaign ended and the stock has continued to perform. However, it is possible that we are not aware of another promotional campaign currently in the works.
In any case, the company’s principal claims to fame are its Herbo and Herbo Wallet app offerings. Very little else that we have looked into appears to be of value or seems even to be a serious effort. But the Herbo offerings may have a chance of hitting some form of paydirt, particularly in California. Herbo is a mapping app with every location selling anything that has anything to do with weed or paraphernalia or vaping or anything vaguely even tangential to the discerning stoner’s needs at a given time. It’s nicely color-coded and clearly useful. In addition, Eco Science Solutions Inc has a version of the Herbo app called the Herbo Gift Card Wallet.
It is not a crypto-currency exchange mechanism. It is simply a gift card wallet. You can make purchases with it in the same manner that you can make purchases with anything else.
The stock has been strong, as noted above, and is verging on a breakout above its September highs. The surprising side of this stock is its performance in the face of growing debt levels and a persistent lack of cash. When you add in a sense of a seemingly winding and eccentric path to market, it’s somewhat difficult to get excited about the play. But seeing is at least partially believing. And they do have a first-mover product ready for growth when Californians start to go to market after recreational pot.
Now commanding a market cap of $62.5M, ESSI has very little cash on the books, which stands against an appreciable load ($510.29k) of total accumulated debt. As noted, this is not a great balance sheet situation. But we are hesitant, as a matter of principle, to argue with the market. In our last update on Eco Science Solutions Inc, we noted that this is a play that‘s “working”, which continues to be the case. Often times, when something isn’t obviously a shiny diamond, but the market refuses to kill it, there may be something special going on. We will update this one again soon with more thoughts. 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!