EYII.OB

[David Randolph]

Many of our dear 3 SOF members have asked for daily updates on EYII.OB developments. So I'm adding the stock to the 3 Pennies on Fire Portfolio and I will buy $1,000 of it around today's open.

A lot of information about EYII.OB can be found on the Double or Nothing thread at the $1,000,000 board or at HYRF's thread.

Perhaps I will buy some more of EYII.OB because it is just too good to miss at these prices, of course, not forgetting money management rules and the fact that this is a very small penny stock (outside of the 3 Stocks or 3 Pennies Portfolios).

Good luck to those already holding  

[David Randolph]

I just want to clarify some points first:

1) This buy recommendation for the 3 Pennies on Fire Portfolio has nothing to do with the $1,000,000 experience.
2) I won't sell this $1,000 of EYII.OB at a double (that would be $0.20, I bought today at $0.10), or even at $0.32 (that's where I'll sell the first $1,000 I bought in a double or nothing strategy).

EYII.OB rose 14% today on volume above average. Volume has been kept up lately, which is great to dry up that supply coming from options and warrants previous holders. I can't wait to see the day when supply vanishes completely from this stock and it will shoot through the roof.

I think it's when, not if, that will happen. It can be tomorrow, it can be this week or a month from now, I don't care, I have a sure thing in my hands and will look to take full advantage of it (I'm thinking of buying trucks of it on the way up).

Good luck to all those holding, but I believe you don't need luck !

[nberski]

Hello David:

Do you think that there will be a capitulation stage when some traders become discouraged and dump their shares - taking the price lower for a short time -  before the blast-off - ?

Nb

[shawFund]

This may be another 10-bag stock ($1.00 within one year).

We have dig out every details of the company's business, know pretty well about its fundamentals, recent deals and potential revenue, profit as well as the reason why the price has big swings recently.

Not many investors in the market place know better than us. Just hold for long term gain.

[David Randolph]

Hello David:

Do you think that there will be a capitulation stage when some traders become discouraged and dump their shares - taking the price lower for a short time - before the blast-off - ?

Nb

I guess anything can happen on the short term. AMEP.OB did just that before it took off. EYII.OB might do that, but it can rise immensely almost instantly. So I would not be a seller here to buy lower, that's very risky. I would start buying on a scale up when the stock begins to climb.

Good luck nberski 

This may be another 10-bag stock ($1.00 within one year).

We have dig out every details of the company's business, know pretty well about its fundamentals, recent deals and potential revenue, profit as well as the reason why the price has big swings recently.

Not many investors in the market place know better than us. Just hold for long term gain.

I totally agree Shawfund.

Nothing new happened yesterday, let me just leave the updated chart.

[JKN]

To me, the reason EYII has the big swings is that the buyers at the lower prices are just nervous, the price approaches a previous resistance level and the guessing of 'what happens next' hits.  It may very well be that some folks are cashing in their 'free shares' and getting paid are a contributing factor.  When you compare this thing to HYRF, HYRf has a 2-year story and they actually make something. EYII is a reseller that has not proven its mettle.  Once they establish more of a history and that they have a client base in which to sell into, I think the swings will settle.

As far as a capitulation stage, the longer this bases and, to me, that means the news cycle, the more these nervous buyers will protect their profits as the pps creeps downward.  The converse to this is that when buyers step in and when good news hits, this has a solid chance of stampeding, history proves that.  If EYII shows some significant sales under this new agreement and the overseas offices, the herd may head for the hills!

[David Randolph]

Thanks for your analysis JKN, I appreciate it, specially on a day where I have nothing new to say about EYII.OB.

There were no developments on the technical or fundamental side today. I will continue holding EYII.OB for th foreseeable future.

[TRUNK]

Here is the product we are selling

http://cgi.ebay.com/Code-Blue-TM-Water-Filtration-System-L-K-NEW_W0QQitemZ5620197628QQcategoryZ19262QQrdZ1QQcmdZViewItem

In the auction it says you can start selling them as well with your own water filtration business- some MLM mumbo jumbo I'm sure, but I emailed the guy for more info.. 

At $80 a pitcher and $30 a filter which needs replacing once a month verified by a digital replacement display timer this thing should make lots of folks rich.. The Niche is ultra strong, The Product is ultra strong and now we just need to wait for things to take off

[422fwhp]

Of course we all would like to see a Bullish Sanpo (http://www.chartfilter.com/candlesticks/bullishcandlesticks2.htm#sanpo)
but does anyone think it will check the 50dma again?  (see bottom chart)

I picked up more at .09 today and will load the boat if it tests the 50day.  My .02

Here's another good link:
http://www.stockta.com/cgi-bin/analysis.pl?symb=EYII&num1=7&cobrand=&mode=stock

[madge20]

My guess is it won't hit the 50day MV.. HYRF had strong volume and a nice up day and for now EYII will continue to trade with HYRF.. I am looking for a move up(probably a gap up) either Tuesday or Wednesday just observing the chart, IF it stays in pattern with the rounding bottom and the past 4 spike moves.. It appears to me the past week or so pattern  is simiilar to when the stock traded before the gap up with that first spike a few months ago...

[422fwhp]

Currently, the 50dma is .09 and another interesting observation when looking at the chart is that just before each run it dropped just below the 50dma.  Rest assured if it drops below .09 I will be picking up more, if only for a trade.

Either way, we agree the time is getting near!   

[David Randolph]

Thanks for your posts, nice link for candlestick pattern information 422fwhp 

There were no news during the weekend and the chart hasn't changed. I'm aware that the stock can break the ascending trendline and that still wouldn't mean it won't shoot up 5 or 10 fold in the coming weeks, so be careful with technical analysis on this stock ...

[fill_the_gap]

Interesting read copied from another board

I agree with you about Cornell. It is not a loan as so many seem to imply. It is a standby equity agreement with shares held in escrow, and Cornell can not touch them unless EYI fails to meet the terms of the agreement should any funds be drawn. Thus far, I can only see that $1,000,000 has been drawn out of $10,000,000 available. So the total number of shares Cornell would seem to be entitled to at this time is 1/10th of whatever is in escrow, and then only in the event EYI does not repay Cornell according the the agreement. The minimum guaranteed income from this first Code Blue contract, in my opinion, will make it unlikely EYI will need to draw much more on the equity agreement.
We know there has been no insider selling because there are no filings to that effect. I understand your concern about possible options out there being converted. I have no idea how many , if any, exist. The stock has been trading as one might expect considering the need to eliminate red ink and pay Cornell back the little that has been drawn. In spite of everything else, it is on the upside of a rounding bottom. It is setting ever increasing bottoms.

Here are some interesting indicators:

http://stockcharts.com/def/servlet/SC.web?c=EYII,uu[m,a]dacayyay[pb50!b200][vc60][iUl14!Lg]&pref=G

The upper indicator is perhaps the best single indicator I can offer you to demonstrate we are in a fairly strong up trend ( aside from the rising bottom curve). The ADX was created to determine if a stock is trading or trending. The indicator draws a line that indicates the strength of a trend, not necessarily it's direction, but it's strength. A reading above about 40 is a strong trend. You can see the ADX has been rising steadily to a strong reading over 40. Look at the two lines, one green (DI+) and ond red (DI-). These lines give you tell you if you are trending up, down or trading. The DI+ crossed above the DI- and riding between 30 and 50 is an upward trend. The ADX above 40 is the strength of the trend.
Now look at the lower indicator, the On Balance Volume. On balance volume is pretty cool the way it was devised. If a stock closes higher than the previous day, the OBV calculates ALL VOLUME that day as buying. If the Close is lower than the previous day, it calculates ALL VOLUME that day as selling. It then draws a line to give you the trend of buying vs. selling...hence,the "On Balance Volume". In the previous spikes you can see buying was balanced almost completely with selling, negating the spike...all but the most recent. Do you see that the On Balance Volume is now sticking closer to the top of the last move up? This tells you selling is losing the long battle with buying... The indicator is trying to help you with your concern about sellers waiting in the wings.
These two indicators are the best I could think of to most directly address your concerns about (1)trend and (2)sellers.
I am not concerned with such short indicators as a 20 DMA because I am not trading the stock. I have moved all my periods out to reflect a longer outlook.

Good luck, what ever you decide,

[David Randolph]

Thanks for that post fill_the_gap 

It's interesting, but I will have to investigate a bit more about that Cornell issue.

I would not focus so much on the technical picture at this point, it is perfectly possible for EYII.OB to break down below its ascending trendline, making many bulls discourage and sell, and finally shoot 5 or 10 fold higher.

There were no news or technical developments on Monday's session, I will continue holding EYII.OB for the long term.

[fill_the_gap]

David,

Your analysis has been outstanding,  I now have a full position in EYII and a higher than usual % of portfolio.  Waiting for a lower price on low volume is not worth the risk of a giant bullish move, imho.