Violeta Slavtchevska

San West, Inc. (OTC:SNWT) Downtrend Continues As Promo Support Ceases

by Violeta Slavtchevska May 4, 2010
San_West_Logo.jpgPromoters had a one-week break and San West, Inc. (OTC:SNWT) noticed their absence. The stock went further down the $1 barrier as the market would not buy any more without any positive signals for a reversal.

After a promotion-free period of about a week, San West keeps loosing value with another 3.75% down yesterday. The stock closed at $0.077 for a share and both investor interest and trading volumes continue falling gradually down.SNWT.png

The first two days of last week were again highly promotion intensive and nine different promoters got $404,000 each to pump the stock. They succeeded in keeping the price up for while and to put some kind of an short-lived uptrend across investors. As the promo cash for this months was finally over, the market could no longer avoid considering the cold facts about San West poor business model.

Not without the support of an enviable record of promotions and press releases, San West had two peaks this year, but since the second and the lower one in the middle of March, the stock has lost over 51% and all factors point it will loose even more, at least until the money for the next campaign is provided.

Speaking of that, it is hard to imagine where the cash for all the promotions comes from, as losses continue growing rapidly by over seven and half times to $3.3 million last year, the stockholders' deficit bubbled to $1.3 million and a costly promotion of the type mentioned above seems like an unaffordable luxury good for a company with only around $373,000 of liquid assets.San_West_Promotions.jpg

Management priorities are hard to be defined in that regard, and the goal to become one of the largest US off-road buggies dealers trough optimizing operational and financial performance sounds more like a joke rather than like a realistic corporate strategy.

Comments 0

Type the characters that you see in the box (5 characters).