Small cap green stocks Eco Depot Inc (OTCMKTS: ECDP), Eco Building Products Inc (OTCMKTS: ECOB) and Profire Energy, Inc (OTCBB: PFIE) has been getting some extra attention lately in various investment newsletters thanks to paid promotions or investor relation campaigns. Of course, there is nothing wrong with properly disclosed promotions and investor relations campaigns, but small cap green stocks tend to be extra volatile when compared with other stocks. So how in greenbacks will these three small cap green stocks produce for investors? Here is a quick reality check:
Eco Depot Inc (OTCMKTS: ECDP) Has the Swiss Army Knife of Water PurifiersSmall cap Eco Depot Inc was formerly an "eco lighting" distributor under new management as the company is in the development stage of transitioning into a manufacturer and distributor of eco friendly consumer brand products. On Friday, Eco Depot Inc fell 6.06% to $0.0930 for a market cap of $4.54 million plus ECDP is up 210% over the past year and down 79.8% over the past five years according to Google Finance.
What's the Catch With Eco Depot Inc? According to various disclosures, transaction of $3k, $5k, $7k, $10k, $20k and $65k have or will occur to mention Eco Depot Inc in various investment newsletters. Last Wednesday, Eco Depot Inc announced that it had signed a Letter Of Intent with Water Technologies Development, Inc (WTDI) to distribute a new multi-patented portable water purification device named the "WaterGizzi™." Eco Depot aims to market the WaterGizzi as part of its Eco-Friendly product line that includes the Click & Pour™ and the recently acquired WaterGeeks™ Filtration Brand via infomercials) and through potential major Retailers by means of its recent agreement with HotTVBrands.com™. Apparently, the WaterGizzi weighs only a few ounces, fits in the palm of your hand and is the "Swiss Army Knife" of water purifiers as its able to function as an in-line filter for Sports Water Bottles or Hydration bladders or can be used on its own to drink directly from any freshwater source. Moreover, it requires no "pumping" or mechanical power to remove chlorine, heavy metals, pharmaceuticals, bi-products, microbial cysts, bacteria, virus and other potential freshwater pathogens. A quick look on Google Finance reveals no revenues; net losses of $0.01M (most recent reported quarter), $0.05M, $0.01M and zero for the past four quarters; and no cash to cover $0.28M in current liabilities at the end of last September. So perhaps investors will want to wait for the infomercials to start in the hopes that the WaterGizzi flies off the shelves.
Eco Building Products Inc (OTCMKTS: ECOB) Extends a Supplier Agreement With The Home DepotSmall cap Eco Building Products is a manufacturer of Eco friendly treated wood products that is protected against fire, mold/mycotoxins, fungus, rot-decay, wood ingesting insects and termites by our proprietary eco-friendly chemistry utilizing ECOB WoodSurfaceFilm™ and FRC™ technology (Fire Retardant Coating). On Friday, Eco Building Products sank 38.46% to $0.0056 for a market cap of $2.58 million plus ECOB is down 77.6% over the past year and down 98.9% since August 2009 according to Google Finance.
What's the Catch With Eco Building Products Inc? According to various disclosures, one promoter owns 500k of Eco Building Products that was purchased on the open market and they reserve the right to sell the shares at any time. Last Thursday, Eco Building Products filed a Form 8-K to announce it had entered into a second amendment to supplement the terms in the most recent Supplier Buying Agreement with The Home Depot, Inc (NYSE: HD). Prior to this Amendment, Eco Building Products and Home Depot agreed to an initial 90 day pilot test to sell the company's products 10 Home Depot retail stores located in the Northeast United States. Pursuant to this Amendment, Eco Building Products and Home Depot agreed to expand the sale of the company's products 104 Home Depot retail stores located in the Northeast United States with the second pilot not being limited to 90 days, but for an indefinite period. Home Depot will also have the exclusive right in the United States and its territories and possessions to sell the company's products. That's really good news and helps take the sting off a filing from earlier in the week to announce that Eco Building Products issued an aggregate of 11,000 shares of Series A Preferred Stock to Mr. Steve Conboy in consideration for services rendered to the company. A quick look at Eco Building Products' financials on Yahoo! Finance reveals revenues of $408k (most recent reported quarter), $1,080k, $1,717k and $1,363k for the past four quarters along with net losses of $1,879k (most recent reported quarter), $13,549k, $2,213k and $3,972k. At the end of September, Eco Building Products had $15k in cash to cover $18,645k in current liabilities – meaning the deal with Home Depot could be a game changer.
Profire Energy, Inc (OTCBB: PFIE) Reports Record Results and GuidanceSmall cap Profire Energy assists energy production companies in the safe and efficient transportation, refinement and production of oil and natural gas. As energy companies seek greater safety for their employees, compliance with more stringent EPA standards and enhanced margins with their energy production processes, Profire Energy's burner management systems are increasingly becoming part of their solution. On Friday, Profire Energy closed at $3.80 for a market cap of $181.75 million plus PFIE is up 214% over the past year and up 276.2% over the past five years according to Google Finance.
What's the Catch With Profire Energy, Inc? According to various disclosures, one promoter has been hired by Profire Energy for investor relations type work. Last Friday, Profire Energy announced that it has filed its Quarterly Report on Form 10-Q for its fiscal quarter ended December 31, 2013 and the company updated its guidance for the 2014 fiscal year. Profire Energy reported an 169% increase in revenue for the three months ended December 31, 2013 for a record $9,530,837 along with a 470% increase in net income to $1,206,306. In addition, Profire Energy raised its revenue guidance from $22.5 million in revenue to between $34.0 and $35.0 million in revenue plus raised its net income guidance from $4.2 million to between $5.3 and $5.8 million. Profire Energy is also debt free. Otherwise and earlier in February, Profire Energy was featured on the "The RedChip Money Report: Small Stocks Big Money" television program thanks to the ongoing investor relations campaign, but the small cap does look good thanks to its healthy financials.
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