Echo Automotive, Inc. f.k.a. Canterbury Res Inc (OTC:ECAU
, ECAU message board
) gained another 11.63% yesterday. The price reached as high as $2.25 per share, but at the end of the session ECAU closed at $1.92 on 3.6 million shares.
One possible catalyst for the positive performance was a press release which said that Indianapolis Mayor, Greg Ballard, had taken a test drive of a Ford E-250 equipped with ECAU's EchoDrive.
The press release goes on to say that Indianapolis is replacing its fleet with electric or plug-in hybrid vehicles. However, it's not clear whether ECAU will actually get any business from the City of Indianapolis.
Unfortunately, that's the really important question for ECAU shareholders. It's no secret that there are attempts to minimize oil dependency, but unless ECAU proves it can make money out of it, shareholders won't really get anything.
This test drive does give ECAU some credibility, but it can't erase the fact that the company was pumped by paid promoters. Additionally, ECAU hasn't filed anything with the SEC since December 18, which leaves the public with very little official information on the company and its dealings.
As mentioned in previous articles, the long-term performance of the previous companies touted by the same promoters and newsletters has been disappointing, to say the least.
A year after its pump job Stevia Corp. (PINK:STEV) is down about 80% from the pump high. The same goes for Stevia First Corp (PINK:STVF) about 10 months after its pump. Both companies are reporting huge losses, and there's no guarantee ECAU will do any better.