Georgi Kamburov

The $3 Million Promo For The Alkaline Water Company Inc. (OTCMKTS:WTER) Is Back

by Georgi Kamburov August 13, 2013
7WTERchart.pngAt the end of last week The Alkaline Water Company Inc. (OTCMKTS:WTER) had some amazing sessions reaching as high as $0.62 and trading nearly 2 million shares on Thursday. The newly created entity received such a wide-spread appreciation from investors after a landing page praising them to high heaven was made public.

Sadly the site was taken down on the very next day and until yesterday a big "under construction" sign was the only thing that could be found on it. As a result yesterday interest in WTER dropped down to a quarter of its previous high not even managing to reach 500 thousand shares.

But now when the advertisement thinly veiled as a report is back online we will see if the same enthusiasm will be displayed. In it WTER have been assigned a price target of $4 to $6 dollars in 5 months but no actual proof has been given for this more than optimistic prognosis. The company is just beginning to sell its bulk-packaged alkaline water and it is unclear how successful their product will be.

In the new version of the promo the picture of Mark Wahlberg and Sean "P.Diddy" Combs has been removed from the front page but it can still be found towards the end. The spelling mistake in the name of P.Diddy is still there though. Many investors who don't have the time to read the entirety of the report might be left with the impression that the two superstars are endorsing WTER but in reality this is not the case. They are marketing the alkaline water of a privately-held company that has nothing to do with WTER.

In the disclaimer at the bottom of the page it is clearly said that the promotional campaign is going to have a budget of $3 million. It is a common practice to inflate the actual sum that is going to be spend but even if a third of this amount is used it will put the pump among the biggest for the year.

The financials left to the company from its previous business don't offer anything too encouraging. They have a negative working capital, some cash reserves and a net loss of $280 thousand. A more worrying issue are the 34 million shares (after a 15-for-1 forward split) bough for just a cent each that could be dumped on the market at any time.

77XUIIchart1.pngInvestors should be careful when buying in on just hype alone. Verifying the fundamentals of the company and their business plan is always a good first step. A fine example are Xumanii, Inc. (OTCMKTS:XUII, XUII message board) who have consistently been among the top traded stocks for the past couple of months. The company hasn't been able to generate any revenues but investors who believed the pump emails sent by Awesome Penny Stocks are still refusing to see XUII for what it really is.

Another company with dismal financial indicators that has been boosted by a paid pump is Bluforest, Inc. (OTCMKTS:BLUF). They have only $43 in cash !!! but last week went as high as $2 dollars per share. Even after yesterday's 16% drop the company is still traded for $1.49, a grossly overpriced number.

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