Eco Science Solutions Inc (OTCMKTS:ESSI) Looking For Bagholders

Eco Science Solutions Inc (OTCMKTS:ESSI) has been one of the most incredible promos we have seen over the past six months on the OTC Markets. The stock keeps going higher and higher without any fundamentals to back it up. ESSI now commands a market cap of over $133 million and yet, has just $72,000 in total assets! This has dumbfounded many investors who are asking what is behind this move and how on earth it has lasted this long.First up, a little background on the company. Eco Science Solutions Inc is headquartered in Maui, Hawaii and describes itself as "a technology-focused Company targeting the multibillion-dollar health, wellness and alternative medicine industry. From enterprise software, to consumer applications for daily use, the Company develops technical solutions that empower enthusiasts in their pursuit and enjoyment of building eco-friendly businesses and living healthy lifestyles. Eco Science's core services span localized communications between consumers and business operators, social networking with like-minded enthusiasts, rich educational content, e-commerce, and rapid delivery of products, all catering to the health-and-wellness lifestyle."The main driving force behind the share gains is a long-running promo campaign by the folks over at The Money Street calling ESSI the "next big thing" for investors. The Money Street even went as far as comparing the company to Amazon (NASDAQ:AMZN) by saying:

If you’re wondering what could happen to ESSI’s value, think along the lines of what has taken place with Amazon (Nasdaq Ticker: AMZN) starting off selling books and compact disks, whom now has a market capitalization of nearly $280 billion. Eco Science Solutions, Inc. (OTC Ticker: ESSI), is leveraging 21st century technologies, distribution and smart-device applications to take advantage of consumers unquenchable desire for Natural Cannabis Medication and Supplementation.

The problem with this analogy is that ESSI has yet to generate any revenues. The only thing the company has been able to rack up is losses, losing $1.1 million in just the latest quarter alone. Well, then why does The Money Street like ESSI so much? According to the disclaimer:

Any Company profiled on The Money Street should be viewed as a paid advertisement. All Featured Company reports are published by The Money Street (the “Publisher”) in an effort to enhance public awareness of such Featured Companies and their securities through the distribution of this Website and supporting advertisements. Featured Companies often provide the Publisher with weekly advertising budgets ranging from approximately $25,000 to $150,000 to cover the costs associated with creating, publishing and distribution of advertisements. Publisher retains any excess sums after expenses as its compensation. The Publisher may be directly or indirectly at any time, a shareholder in a Featured Company. Readers should take this into consideration in evaluating bias. If successful, this Website and supporting advertisements placed by Publisher may increase investor and market awareness, which may result in increased numbers of shareholders owning and trading the common stock of our Featured Companies, increase trading volume, and increase share price of the underlying common stock.

The other driving force behind the ESSI surge is the large short interest. Short sellers have been trying to top pick ESSI for the past six months with no luck. At the end of December, there were 455,153 shares shorted. As ESSI's share price has climbed, the shorts have been forced to buy back their shares or keep paying the high borrow rate. The end result was the shorts magnifying their own pain.Currently trading with a market cap of $133 million, the ESSI promotion has gone on longer than we imagined. It has also confounded the folks over at Seeking Alpha. While we can't say for sure how much longer it will last or when it will end, all we know is that the dump is eventually coming. All we can do is warn investors to not get left holding the bag. There's also the risk of the SEC stepping in and implementing a trading halt. At that point, it's game over.We will be updating our subscribers as soon as we know more. For the latest updates on ESSI, sign up below!Disclosure: We have no position in ESSI and have not been compensated for this article.