2009 September 03

With 100 billion shares authorized and over 21 billion shares outstanding its a wonder 1 billion+ shares in volume didn’t move the stock today. No worries though only 17+ billion of those 21 billion+ are freely trading.

The share count itself makes you wonder why it must be so large. 1/10th of a trillion? Sounds more like something our government would be printing, not a $.0002 penny stock.

The volume for EVFL has been tremendous but the stock just doesn’t budge. Usually massive dilution kills the volume, but in this case it keeps coming. This might give reason to have hope that the stock will break out of its tight range, but taking a closer look at their financials that hope is quickly put to rest.

If you look at the company’s sales revenue for 2009 from the recently released financials you wonder why anyone is buying this stock at all, let alone by the billions. The company reported a sales revenue for the sixth months ended June 2009 of $0. In the 6 months last year they reported some revenue. So the financial report is revealing a company that has gone from producing some revenue to producing absolutely none at all. This is representative of a company that is not growing but illustrates this company has gone from selling a little of something to a lot of nothing. Not even one can of soda, or one truck stop, not even one medicine dropper of bio fuel. Surely this does not urge investors to buy shares from this stock’s already bloated share count?

Then again if this was a rational market a company would never be able to sell 21 billion shares to the public while having another 79 billion left at their disposal. The biggest question here is who is buying this stock and why? Feel free to comment of this. I am all ears.