theStreetsweeper.org Calls Out Ecosphere Technologies (ESPH)

Melissa Davis over at thestreetsweeper.org, who we interviewed not long ago, posted a very detailed article today on Ecosphere Technologies ESPH. The company is backed up by some big names, but their claims about their water purification system may be dubious. Echosphere has been trying to secure a deal to provide BP BP with their devices to assist in the Gulf Coast cleanup. The company's supporters include world-renowned environmentalist Jean-Michel Cousteau and former NFL quarterbacks Drew Bledsoe and Troy Aikman. Echosphere (ESPH) has made some strong claims about their ability to assist with the oil spill cleanup. Aikman was quoted as saying, “We believe that we have the technology – and, more importantly, the equipment – to be able to handle 21 million gallons a day. And that’s something that no one else can claim.” Skeptics abound, however. ESPH's technology was originally developed for natural gas projects. Devon Energy DVN was an early ESPH client and tested the company's technology for use in ESPH’s core business of water treatment for the natural gas industry. Devon (DVN), apparently was not impressed. “We didn’t find the technology to be useful in the work we were doing,” Devon spokesman Chip Minty told TheStreetSweeper last week. So “it didn’t work out.” BP it turns out, is familiar with Echosphere's technology as well, as they were engaged in a pilot project with the oil giant earlier this year which allowed ESPH to showcase its technology for BP. According to Davis' article, however, when BP suffered the Gulf drilling disaster two months later, they looked elsewhere for remedies - despite being familiar with the Echosphere devices. This has not stopped company representatives, however, from trying to create the illusion that Echosphere was likely to sign a deal with BP to help with the cleanup. There are a number of other characters that fit into this story, so it is highly encouraged that readers head over to thestreetsweeper.org to get the full scoop. Davis' article has clearly gotten the attention of investors as ESPH has been besieged with sellers this morning. During the first couple of hours of Friday's trading session, the shares have fallen 11.41% to $1.32. In fact, we heard that Tim Sykes, the noted penny stock short seller, is looking for shares to borrow so that he can go short this name.