Dragni Dragnev

Will Solarwindow Technologies Inc. (OTCMKTS:WNDW)'s Bounce Continue?

by Dragni Dragnev July 19, 2016

Solarwindow Technologies Inc. (OTCMKTS:WNDW, WNDW message board) managed a green session yesterday – but will it manage to regain even more ground any time soon?

Insiderfinancial author Alex Carlson seems to think that WNDW was oversold at the end of last week. But was it really? A careful look at Mr Carlson's expectations are based more on the faith that “something MUST be going on” in WNDW.

Well, a look at the company's latest financial report reveals that, until very recently, almost nothing of note was going on with WNDW:

  • Cash and cash equivalents - $123 thousand
  • Total current assets - $572 thousand
  • Total current liabilities - $2.5 million
  • Quarterly net loss – $2 million

Naturally, the company has some more cash on hand nowadays – but that only came at the expense of issuing more toxic convertible notes.

And, suffice it to say that WNDW had more than enough of those even before this latest batch. Last time it reported, there was nearly half a million dollars worth of debt that note-holders could convert into shares of WNDW common stock at a 15% discount.

However, that's just scratching the surface, and the deeper you dig, the worse things get. Investors really need to consider the fact that there are still millions of warrants for the purchase of WNDW shares outstanding. Normally, this wouldn't be that big of a deal – however, said warrants allow their owners to buy shares at rates as low as $1.37 – which is a rate two times lower than the stock's current market price.

So – is WNDW oversold and a good dip-buy, or is what we're seeing now just a dead cat bounce? Only time will tell, and until it does, we urge investors to be extra careful, because the latter possibility is very real and could prove devastating.

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