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Electric City Corporation (OTC BB: ECCC) is practically telling investors it has the greatest invention since electricity itself, but it's not clear what the company is staking that claim on. Electric City manufactures and sells a piece of equipment it calls the EnergySaver, which supposedly can reduce lighting costs at least 20 percent by regulating "the power and flow, while reducing volts, amps and kilowatts to the exact amount of power needed to maintain your essential lighting needs by only allowing that specified amount of electricity to enter the establishment."
Electric City says that the EnergySaver has been in use in Europe for 17 years, so you'd think there would be a wealth of information - financial and otherwise - for U.S. investors and consumers to examine. Not so. Aside from some extrapolation of pollution figures from the EPA and some spotty figures on trial runs, there are no hard facts or substantive studies.
But there's been no shortage of hype. Besides the stock and warrants it has paid to promoters, Electric City has been issuing press releases at a brisk pace. Since April, Electric City has posted 28 press releases, including eight in July alone. Coincidentally (?) its share price has spiked recently, more than quadrupling between mid-June - when it was trading between $7.50 and $8 - and July 15, when it hit a 52-week high of $32.
But it wouldn't take much to get these shares jumpin'. There are 11 million Electric City shares outstanding, according to the company. Of those, 1 million are in the float, which has turned over roughly twice during Electric City's recent rapid ascent.
Without some SEC filings to read, or at least audited financials, investors might want to channel their energy elsewhere.
As always, tread lightly……………………. The Stock Detective
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