One-trick pony or Phoney Baloney? This is a simple question to answer when you look into the penny stock of Eco-Tek Group, Inc. (OTC: ETEK), a Company that blends and sells oil lubrication products. While traders are gearing up for the green flag to drop for the race to start for ETEK stock, a few drips of shares traded this past week lighting up radar screens everywhere. Since the connection to some of the greatest pumped up rides on the OTC is evident, thanks in part to the 28-for-1 stock split a year ago, the viscosity reducing product blender should soon be in the mix for volume trading to become more consistent very soon.
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ETEK Stock Chart
Market Cap: 163.03M
Last (Thursday): 0.65
Volume: 7,500
Authorized: 7,000,000,000
Issued and Outstanding: 250,819,800
14-Day Rel Strength: 23.55%
14-Day Stochastic: 52.38%
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Once focused on mineral exploration activities under the previous Company name, Sandalwood Ventures Ltd. (SWPZ), as of June, 2012, the Company acquired Eco-Tek, a turnkey operation which blends and sells oil lubrication products and is the developer of Clik Tech Engine Treatment. The acquisition cost a mere 125 million shares of the then SWPZ stock which recently changed to ETEK along with the Company name to Eco-Tek Group Inc.
The question of if the Company is a one-trick pony or phoney baloney is simple to answer – one focus, one product line, one industry. However, Eco-Tek is reporting sales for the three and nine months ended September 30, 2012, $70,749 and $220,890, respectively.
Sales were a fraction of those reported by Green Earth Technologies, Inc. (GETG) for the same periods who also supplies, as well as many other products, a line of lubricant products for the automotive, transportation, agricultural, and industrial markets.
One thing ETEK does not have is an endorsement from Daytona International Speedway and the Daytona 500 weeks before the inaugural race of 2013 is set to begin for NASCAR, an audience which is a superior target market for the Company’s products. GETG has that one in the bag already as of last week’s PR announcement.
What Eco-Tek Group’s product line does have is an endorsement, hosted on their website, by former IndyCar Champion and Indianapolis Speedway’s Indy 500 Pole Position winner as seen below:
Best case scenario for ETEK to be a solid penny stock to get involved with would be if they cross-pollinated the best of recent winners: (i) drop the share price to something more palatable in the 0.10 range, (ii) run the campaign on the same selling points as the current Echo Automotive (ECAU) promotion, focusing on fuel efficiency for corporate fleet management and even the marine shipping industry, and (iii) run it similarly to the “Clotamin” distribution pattern Sunpeaks Ventures (SNPK), now Pharmagen Inc. (PHRX), did back in April, 2012.
Put those all together and there is a chance that ETEK stock could be a 5-bagger or better.
About ETEK Stock
Eco-Tek Group Inc. blends and sells oil lubrication products and is the developer of Clik Tech Engine Treatment. The Company is a distributor of products and does not have any exclusive rights to the products it distributes other than the Clik Bypass And Magnetic Oil Filtration For Trucks.
Click here to view the SEC filings for ETEK.
Last 5 Trading Sessions:
| Date | Last | Change | % Change | Volume |
| 02/01/13 | 0.6500 | unch | unch | 7,500 |
| 01/28/13 | 0.6500 | unch | unch | 205,100 |
| 11/23/12 | 0.6500 | -0.0500 | -7.14% | 100 |
| 09/10/12 | 0.7000 | unch | unch | 1,500 |
| 09/07/12 | 0.7000 | -0.2500 | -26.32% | 81,000 |
Bottom Line: It could be weeks before something clicks with ETEK racing its way to the top of anyone’s list of penny stocks to trade, it could be days, it could be months. One thing for certain, shares of ETEK stock are going to eventually trade consistently and when they do, the 0.10 to 0.20, the lower the better would make for the best entry, assuming it drops before the green flag does.
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