EnergyConnect Group Inc. (OTC:ECNG) stock flew up up again on March, 30 by another 12.38% reaching a daily close of $0.18 and more than doubling the trading volume. The rise may have been precipitated by directors purchasing the company’s common stock and filing financial results.
On the second following day, EnergyConect’s stock marked a remarkable jump after changes in the beneficial ownership of the company were announced. Four of the company’s directors purchased all together 450,000 newly issued shares of common stock. It is quite possible that the market price increase from yesterday is mostly due to an artificially created demand by insiders, since previous good news related to EnergyConnects’s business managed to raise the value only to $0,14.[BANNER]
As EnerergyConnect provides smart grid demand response (DR) technologies, its stock started going up already on March 19, as it became clear that the Federal Energy Regulatory Commission (FERC) had initiated a rule concerning DR Compensations. The proposed rule recommends an increase in the compensation paid to retail customers using DR Devices to reduce their energy costs in response to the wholesale market prices. EnergyConnect’s president and CEO Kevin Evans believes the proposal is a win for everyone, as it equalizes compensation paid to retailers and generators and will thus involve all energy consumers in the improvement of competitiveness and reliability of the smart grid.
Despite the expected positive trend for the energy market, the current financial results of EnergyConnect, filed around 10 days before that, do not leave much room for optimism. While the company did manage to reduce their operating expenses, their revenues are declining and EnergyConnect is still unable to generate any positive earnings from its operating activity. Moreover, it seems to be financing its business through new stock issues and has invested over the last year more in furniture rather than in software and computer equipment.
Read more from the original source:
Filed Under: Press Releases
About the Author: