Gediminas Jasionis

San West Inc. (Nasdaq: SNWT) Says Revenues Will Fall in Line With Guidance

by Gediminas Jasionis February 16, 2010
San_West_Inc_logo.jpgSan West Inc. (Nasdaq: SNWT) pushed up after an unaudited report of $350 thousand worth of sales made through their online business partnership with incepted in mid July 2009. The company expects this number to increase by another $100 thousand by spring 2010 when another report is to be issued.

The manufacturer of buggy spare and repair parts also reported their stores have already generated sales that exceeded the management's modest part of expectation range of $6 to $8 million expected for the fiscal 2010.

Share price jumped up over 18% to 12.9 cents as the announced news spread, but investors must apply caution evaluating chances of further gains. The amounts are still unaudited and were most likely presented to keep the investors excited. Full year results are expected to come in only with the spring quarter data.

To date the company has recorded modest revenues, which were achieved in the last two quarters of 2009. It's still too early to value their unaudited results, and more over, value them as sustainable. San West also holds a serious short term capital deficit as their previous financials depicted, thus with only sales guidance we can't judge the expenses, which should've gone up as well.

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