Gediminas Jasionis

False Price Rally of EcoBlu Products, Inc. (OTCBB: ECOB)

by Gediminas Jasionis September 23, 2009
ecoblu_logo.jpgAfter declining for over half a month, EcoBlu Products, Inc. (OTCBB: ECOB or ECOB.OB) stock price shot up 65% when the company announced some positive news. Although the strength of this price move is still doubtful at leas t some investors most likely managed to break even or reduce their losses.

Other than that the company doesn't look in shape to generate value for investors anytime soon. The recent price movement occurred under considerably low trading volume and so it should be considered as anything else but the reaction to the news.

As announced by EcoBlu their products will be used by the company MASA Homes when building 25 homes in Irvin, Texas. While that may look like a EcoBlu's recognition in the market, one supply contract hardly ever means much on the fundamental level.

Moreover there were no details included on the potential gains form this event. And the price rally has been tapering off shortly after the trading began.

From the looks of it the market it too thin to go short on this one and the uptrend just not going to happen until there are developments significant enough to move the price for prolonged period. In conclusion it's just another entity to dangerous to trade at the moment.

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