Nelly Shishkova

San West, Inc. (OTC:SNWT) Keeps The Gain On Promotions

by Nelly Shishkova October 26, 2010
San West, Inc. (OTC:SNWT) stock has been keeping the gain on promotions lately. Over the last days, the share price and the trading volume have been SNWT_chart.pngmoving up sequentially.

At the beginning of this week, SNWT soared 76% on the market and managed to trade over 14 million shares only for a day. A tremendous success for the stock, which provokes the investors' attention.

The most reasonable explanation on the high trade appears to be the promotion of San West from this Monday. In fact, according to the records the company has been promoted too often and the promotions for this month are already five in total.

San_West_logo.pngThough, it looks like San West plays safe and apart from the promotions it posts heavily positive news on its business. The last one appeared yesterday to report that the company was to increase its sales force and to launch several promotions for the peak off-road season from end-October till mid-May. The good news immediately strengthened the market position of SNWT and the climb continued.

San West Inc. is a retailer of off-road recreational vehicles and also offers aftermarket parts and accessories as well as a vehicle repair and maintenance center. In 2009, the company used to trade much higher, though this year the stock price moved down. It seems that now San West is trying hard to start a new uptrend and to hold the gain.

The company has reported increased revenues, however, its liabilities are over three times higher than its total assets. In its quarterly report, San West states that "From inception to June 30, 2010, we have incurred an accumulated deficit of $5,166,819" and the company has no sufficient cash to cover the losses.

These results raise a substantial doubt about SNWT's future as the company is highly dependent on finding additional financing to continue operating.

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