EVGI, XDSL and OGNG: Renewable Energy or Green Stocks With News for Investors

Eco Ventures Group (OTC: EVGI), mPhase Technologies (OTC: XDSL) and Organa Gardens International (OTC: OGNG) are three small cap renewable energy or green stocks that recently issued press releases or had other updates to report to investors. Specifically, EVGI announced the completion of the construction of a precious metal extraction plant, XDSL issued an update about a deal to acquire a developer of technologies to reduce energy usage and and OGNG acquired a green coating distributor. Of course, there is nothing wrong with small cap renewable energy or green stocks issuing press releases or updates to investors about their activities. However, its also important to remember that just one well placed or well written press release or update from a small cap renewable energy or green stock like EVGI, XDSL or OGNG can send shares soaring (and likewise, cause them to sink). Hence, here is a closer look at all three to help you decide whether their recent press releases or updates warrant further due diligence:

Eco Ventures Group (OTC: EVGI) Announces the Completion of the Construction of a Precious Metal Extraction Plant

Eco Ventures Group has two core divisions, the Eco Minerals Recovery Group which extracts precious metals from ore bodies and reclaimed mine tailings and the Eco Energy Group which produces advanced biodiesel from recovered cooking oils and oil-rich plants. Eco Ventures Group recently announced that it has completed the construction of a precious metal extraction plant to extract Gold, Platinum, Palladium and other precious metals from concentrated ore or mine tailings. EVGI noted that Phase I of the project gives the company the ability to process 5,000 tons of concentrated ore per year and there are plans to increase the facility’s capacity 10,000 tons of concentrated ore per year. On Wednesday, Eco Ventures Group rose 29.17% to $0.620 (EVGI has a 52 week trading range of $0.13 to $15 a share). However, investors should note that last week, Eco Ventures Group dismissed its independent accountant which had repeatedly raised concerns about the company's financial health and hired a new one. Specifically, Eco Ventures Group's previous independent accountant had raised "substantial doubt" about the company's future due to its historical losses (since inception) along with a working capital deficit.

mPhase Technologies (OTC: XDSL) Issues an Update About Their Deal to Acquire a Developer of Technologies to Reduce Energy Usage

mPhase Technologies is developing a green smart battery technology for handheld gaming devices, high tech PDA/cell phones and other applications for sophisticated military, medical, industrial and consumer technologies. mPhase Technologies recently issued an update about its letter of intent to acquire Energy Innovative Products, Inc. (EIP), a developer of proprietary technologies that will reduce energy usage in refrigeration and cooling systems plus equipment that uses AC induction motors. Specifically, mPhase Technologies now expects a Definitive Agreement this month that close in October 2011. mPhase Technologies’ President noted that corporate demand for energy saving solutions is rising due to increasing fuel costs, electricity costs and concerns about greenhouse gases. On Wednesday, mPhase Technologies rose 3.08% to $0.0067. However, investors should note that mPhase Technologies reported $18k for the quarter ended March 31, 2011; net losses of $1,324k (March 31, 2011), $721k (December 21, 2010) and $4,363k (June 30, 2010) and net income of $1,994 (September 30, 2010) from other income sources; and $228k in cash to cover $3,158k in current liabilities.

Organa Gardens International (OTC: OGNG) Acquires a Green Coating Distributor

Organa Gardens International offers a vertical hydroponics farming system. However, Organa Gardens International has recently announced that it has completed its merger agreement with Integrated Green Technologies LLC (IGT) - an industrial tools, machinery and equipment manufacturer that is also a distributor of heavy-duty blasting equipment plus green environmentally safe mobile powder coating systems for the marine industry. Organa Gardens International also announced that they are beginning the process to change its name to better reflect the company being in the powder coating industry. On Wednesday, Organa Gardens International closed at $0.028 (OGNG has a 52 week trading range of up to the $0.03 level) while investors should note that the company has reported no revenues; net losses of $26k, $24k, $118k and $21k for each of the last four quarters; and no cash.

The Bottom Line. Renewable energy or green stocks EVGI, XDSL and OGNG may have news but investors should look beyond their news and do further digging into the financials of all three.