Todor Pichurov

Andalay Solar, Inc., f/k/a Westinghouse Solar, Inc. (OTCMKTS:WEST) Careens Downhill

by Todor Pichurov October 3, 2013
3WEST_chart.pngYesterday marked another disappointing session for Andalay Solar, Inc., f/k/a Westinghouse Solar, Inc. (OTCMKTS:WEST, WEST message board). The stock crashed nearly 22% down in a third consecutive red session.

After the latest green spike of the ticker that happened on Sep 27, sending WEST 58% up on virtually no news. The following three sessions have been a downhill blitz, with the ticker closing below its pre-spike values as of yesterday. The same traders on Internet discussion boards who thought WEST had bounced off a support line at $0.33 are now voicing their disappointment with the movement.

It's more likely their disappointment should lie with their reliance on technical analysis for a penny stock that had just turned hugely volatile. WEST has given shareholders very little to get excited about in recent months. The company's latest report is a quarterly covering Q2 of this year and it contains the following:

  • $216 thousand in cash
  • $5.3 million in current liabilities
  • $211 thousand in revenues for the first six months of 2013
  • $1.4 million in net loss for the first six months of 2013

The company posted an 8-K only yesterday, informing that they entered a loan agreement for the sum of up to $500 thousand, granted against WEST's accounts receivable and inventory, with $350 thousand already borrowed and received as of Sep 30. Traders were not thrilled by the announcement, as well as the fact that the advanced are secured by a lien on 'all of the assets of the company', as per the filing, and the price took a nose dive within the first hour of the session, never to recover significantly.

WEST is facing a number of other issues we have looked at before, including a dramatic slip in revenues year-over-year, possibly related to a merger deal that was delayed multiple times and eventually cancelled, leading to 'disruption' in supplier relations. WEST also renamed to Andalay very recently, dropping the Westinghouse name and brand, for the use of which they owe $880 thousand in past due license fees, as of August this year.

WEST is currently trading another 2.4% down in the early session.

Traders are advised to exercise caution and do their own research and due diligence before investing in any stock, especially when the ticker in question is going through bouts of severe volatility.

93GSAT_chart.pngOther OTC stocks that were in the spotlight in yesterday's session include Globalstar, Inc. (OTCMKTS:GSAT) who closed 4% up and are currently 3% green in early trading once again. Alkaline Water Company, Inc. (OTCBB:WTER) attempted another recovery, closing 13% up on Wednesday on 2.6 million shares traded.

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