EGPI Firecreek, Inc. (OTC:EFIR
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) cranked up the share price when the company expressed intentions to expand their business.
The stock trading under 1 dollar more than doubled in the past two days. Clearly the rumors began spreading before the official news, as witnessed by a slight increase from Wednesday. EFIR publically announced intentions to acquire an operating oil and gas company.
The volume, post announcement, was ten times the daily average with over 22 million shares changing ownership. The price jumped up 83% in only half a day with no slowing down at the end of the trading session.
The news was not really a material event - the Letter Of Intent only presents a serious consideration, but not an obligation to really follow with the acquisition. Another matter is, despite EGPI's CEO talking about growth and expansion, the deal looks more like a reverse merger.
EGPI had no revenues or cash at the end of 20009. Although not registered as one, the company resembles a public shell. According to the official announcement, the target of the planned acquisition, Oil Service Company, has a 40 year history of operations and at least $6 million worth of assets backed by millions in annual revenues and a positive bottom line.
With short lived spikes in share price, EFIR carries a notorious history of losing share price value. The last steady decline, since September 2009, accounts for an 87% value loss to date.