eCrypt Technologies: Why It's Going To Zero

| About: eCrypt Technologies, (ECRY)

Summary

This stock is being promoted by Stocktips.com.

This will end badly like all past Stocktips.com promotions.

Shady entities holding free trading shares in Belize and Vancouver.

eCrypt Technologies (OTCQB:ECRY) is a name that I believe is currently the target of a penny stock promotion scheme. It is my view that the stock's intrinsic value is somewhere near $0, and it is with conviction that I recommend that any investors currently in the name sell the entirety of their stakes immediately. I believe that eCrypt Technologies is a stock definitely worth shorting. My track record of identifying and publicly exposing such highly overvalued equities is excellent.

Little Revenue, Debts, No Business. Bright Future?

As is usually the case with these types of hyped-up scams, it takes only one quick glance at the balance sheet to realize that the $74M market capitalization that this equity commands is beyond ludicrous. With $25,868 in total current assets and $1,856,033 in current liabilities in the recent quarter, it is clear they are not going in the right direction. I find it difficult to believe that the company can make any moves in the right direction. They really can't, and it's my suspicion that the purpose of this company is not to succeed but to sell stock. The recent volume is due to overly bullish promotional mailers.

Picture of ECRY chart

You can see that trading in eCrypt Technologies started seeing really big volume on November 21, 2014. I first received an email from Stocktips.com on November 21, 2014 at night. The emails linked to a landing page with a bullish video of eCrypt Technologies Inc. The email campaign had a disclosed budget of $5,100,000. Coincidence with the time of email campaign and volume in eCrypt Technologies? Absolutely not.

Email Campaign

Stocktips links to a promotional Video in their emails. It is a very overhyped video on how you could have made so much money on their past picks. What they forget to tell you is if you had invested instead of traded it, you most likely lost everything you invested. It's a very misleading video.

Disclaimer

You can see obviously someone is interested in increasing public awareness for eCrypt Technologies. Most likely the foreign entities that have shares of eCrypt Technologies Inc.

Why else would someone spend up to $5,100,000 to increase public awareness? At these levels, those are worth tens of millions of dollars! It is worth it to them because if they can bring in buyers and liquidate their shares around these prices that can mean millions in profits! Running pump and dump schemes is a lucrative business and that is why we see it way too often. My job is to alert you.

Stocktips Promotion History

Websites

http://www.stocktips.com/

This stock promotion group tends to couple their email promotion with a nicely done promotional video.

Amarium Technologies Inc. (OTCPK:AMMG)

Disclosed Budget: $20,000

Shares Outstanding: 31,173,661

Promotion High: $.59

Market Capitalization at High: $18,392,459

Percent Drop: 99%

Pan Global Corp. (OTCPK:PGLO)

Disclosed Budget: $1,100,000

Shares Outstanding: 155,550,000

Promotion High: $.99

Market Capitalization at High: $149,328,000

Percent Drop: 75%

Tiger Oil and Gas. (OTCPK:TGRO)

Disclosed Budget: $2,500,000

Shares Outstanding: 42,728,159

Promotion High: $1.59

Market Capitalization at High: $67,937,772

Percent Drop: 95%

Well Power, Inc. (WPWR)

Disclosed Budget: $2,500,000

Shares Outstanding: 107,931,034

Promotion High: $.86

Market Capitalization at High: $92,820,689

Percent Drop: 95%

Pingify International (OTC:PGFY)

Disclosed Budget: up to 6,500,000

Shares Outstanding: 50,100,000

Promotion High: $1.75

Market Capitalization at High: $87,675,000

Percent Drop: 99.7%

Alkame Holdings, Inc. (OTCPK:ALKM)

Disclosed Budget: $4,600,000

Shares Outstanding: 74,045,606

Promotion High: $.513

Market Capitalization at High: $37,985,395

Percent Drop: 94%

eCrypt Technologies, Inc.

Disclosed Budget: $5,100,000

Shares Outstanding: 126,379,802

Promotion High: $.59

Market Capitalization at High: $74,564,083

Percent Drop: ????

My Recommendation

If you own shares of this company, get out now. Do not hope that you can hang on to sell them to a greater fool. These shares are worthless. I have shown you that the reason for the promotional mailers indicates that the individuals behind this stock scam are trying desperately to unload their worthless shares onto the unsuspecting public and book a huge profit before the inevitable collapse. If you are a more sophisticated investor and can get a borrow on these shares, then I believe that shorting this name will be highly lucrative for you. I believe the huge unusual action in eCrypt Technologies Inc. makes it at risk of a SEC halt. This will end up just like all their last picks - near 0. If you were burned on this one, I recommend learning from it.

Disclosure: The author is short ECRY.

The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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