ORLANDO, Fla., June 15, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced today that it has dropped coverage on Earth Biofuels, Inc. (OTCBB:EBOF).
Clay Mahaffey, CFA, RedChip Research Analyst, stated that:
"Earth Biofuels' management has been unresponsive to phone calls, and there is an ongoing lack of guidance from the Company. Our sense is that Earth Biofuels is currently undergoing a restructuring process. If we are able to gain some clarity into their situation, we may reinitiate coverage.
"We initiated coverage on the company in December of 2006 when the stock traded at $1.40. On April 18, we reported a quarterly update on the Company with a price of $0.40, a 12 month target price of $1.00, and a Speculative Buy rating. Since that time, the stock has declined steadily and is currently trading at $0.145. That is a 64 percent decline in stock price in less than two months time."
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