Petar Ilievski

San West Inc.(OTC:SNWT) With Mystical Boosted Activity on the Market

by Petar Ilievski March 24, 2011
5San_West_logo.pngIs it just possible that someone out there knows something I don`t - this is the prevailing thought among traders after yesterday`s intense session of San West Inc.(OTC:SNWT). There are questions and rumours, but one thing is clear - the last few days were all of positive development on the stock market, yet nothing stands out to justify them up-to-date. SNWT-24.03.11.png

A quick glance at the recent stock performance and company press releases would make this week`s case even more peculiar. Three major announcements came out in January, February and March:
  • Jan 20,2011 - San West's Online Sales Divisions Growth Exceeds 629% in 2010
  • Feb 16, 2011 - San West Announces Record Online Sales & Web Traffic for January 2011;
  • March 3, 2011 - San West Announces Major Online Sales Increase for January and February;
Now, all of the above are a natural catalyst for a trading frenzy to begin, yet the volume of traded shares during the sessions following the above announcements was not really exceptional. In fact, the sum of all traded shares after these announcements is nowhere near that from yesterday. This Wednesday, more than 12 million shares were traded, the price jumped to $0.019, and if the trend that formed on Monday continues by the end of the week the stock might even hit an all-time-high in terms of volume.

Now as mentioned there is nothing major that happened this week that could justify this sudden burst. Let alone, even when there is, it is not much of a catalyst for traders to rush for San West stock. On the other hand, it is logical to assume that there might be something coming up soon, that could cause for the stock to jump high and really attract traders. In this aspect, a quarterly report is due next week, though its impact on the market is questionable given the example with the above mentioned announcements about skyrocketing revenues.

On a related subject, the SEC has also had some remarks about the quarterly financial filings of San West for 2009 and last year, regarding some accounting mistakes, which are explained in detail here.

One thing is certain, though. So far the company has not been particularly stable in terms of balance sheets. Nevertheless, more and more traders focus their attention on it, especially after this week`s mystical hype. In terms, it is highly possible that the upcoming weeks would also be ones of vivid trading activity. Whether the positive price trend would remain is another matter entirely.

Comments 0

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