In a custodianship play by Emergent LLC, which specializes in solutions for bringing private companies to the public market, Eco-Tek Group, Inc. (OTC: ETEK) has increased 260% since September 21st. Hitting its highest value on September 29th, ETEK has been gaining momentum as it works towards a merger and could be one of the hot penny stocks today.
While ETEK is still pink limited, it has already submitted all disclosures to the OTC Markets and now shareholders are waiting on the OTC to finish processing its paperwork. This is expected to be completed in short order as its custodian – Emergent LLC – has discharged the shell as of September 29th. Once it is current, the reverse merger candidate will be announced but many investors are already speculating as to the sector ETEK could enter.
Initially, ETEK specialized in the development and marketing of cost effective green lubrication and filtration products which were marketed across retail outlets for transportation, marine, and industrial sectors. But now it appears ETEK may be pivoting towards the AI sector after the company updated its products and services description on its OTC profile. Without confirmation from the company itself, investors cannot be certain ETEK’s reverse merger candidate will be in the AI sector, but the change is definitely a bullish sign for investors. This is an extremely promising industry projected to grow from $47.47 billion to $360.36 billion by 2028.
As a shell, ETEK currently has no operations, assets, properties or facilities. Due to inactivity, ETEK has no debt or convertible notes which makes it even more appealing to merger candidates. ETEK’s custodian has also announced it has no plans for a reverse split.
Emergent recently announced that it was considering returning surplus shares of ETEK; however, because “all the authorized unissued shares are on reserve” they cannot be retired. According to Emergent, the shares on reserve have no owner and therefore cannot be sold. But because they also cannot be retired, they are “essentially ineffectual”. This could be good news for ETEK’s share structure since the company has 7 billion authorized shares with 5 billion outstanding.
Bullish investors are also confident in ETEK’s merger potential thanks to Caren Currier’s signature as a consultant for this custodian play. Caren Currier has earned an incredible reputation in the OTC as a merger guru. As the current CFO for the investment holding company FCCC, Inc. (OTC:FCIC) and One World Universe Inc. (OTC:OWUV), Currier has successfully handled custodianship plays for companies like King Resources Inc. (KRFG), Kat Exploration Inc. (KATX), Novation Holdings Inc. (NOHO), International Star, Inc. (ILST).
With the anticipation of pink current status this week and news surrounding its possible reverse merger, many investors have been speculating that ETEK will have a runup to pennies very soon.
Holding out for pennies, investors like @OtcRock are waiting on big news from ETEK
After its recent runup, ETEK is currently trading at $0.0054, with a resistance at .0069. A weak support formed near .0040 with a secondary one at .0016. Following Emergent’s tweet on the 27th, ETEK dipped sharply as did accumulation which has since recovered and is continuing to grow. The RSI is holding at an ambivalent 50 but the stock may continue moving upward following a bullish crossover from October 4th.
Should you Buy?
As one of the hot penny stocks today, ETEK has a number of upcoming catalysts that could continue the runup, at least in the short-term. With ETEK likely becoming pink current this week, merger news will follow. Bullish investors are hopping on the bandwagon, hoping to catch the upward trend. In the long term, ETEK could generate revenue after its merger. If it enters the AI sector, then the company’s value will likely increase due to the sector’s potential. As is, ETEK will likely pass its resistance at $.0069 after becoming current and with merger news.
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