Georgi Kamburov

Alkaline Water Company Inc. (OTCBB:WTER) Loses Some Steam

by Georgi Kamburov September 10, 2013
5WTERchart.pngAlthough the stock of The Alkaline Water Company Inc. (OTCBB:WTER, WTER message board) is still climbing up the stock chart it may be reaching the point where investors will start to cash in. Despite posting new record prices almost daily the ticker closed down below its opening price for the past two sessions. Yesterday interest in the stock also came to record levels with 2.3 million shares traded throughout the day.

The company presents a rather peculiar case among the numerous pennystocks. It clearly displays some of the classic telltale signs of a pump scheme. They did a 15-for-1 forward split, then a pump campaign relying on a $3 million budget was initiated and the company themselves started churning out PR articles.

 One of the biggest red flags were the 34 million free-trading shares held by insiders who bought them for just $0.00067 per share.

Its fundamentals are also far from encouraging. For the period ending June 30 they had:

  • $384,700 cash
  • $580,662 total assets
  • $37,762 total liabilities
  • No revenues
  • $182,487 net loss

But the idea to sell alkaline water in bulk might actually prove to be viable. WTER have been able to achieve national distribution through several agreements and yesterday they announced that a letter of intent was signed for the purchase of a bottling plant. In an attempt to further boost the confidence of their shareholders a conference call was held earlier today. Asa result the stock is 3% up in early trading.

NVIVchart.pngDoing your own due diligence is essential before investing in WTER. The ticker is showing signs of faltering and may crash at any time. Yesterday the stock of Cal-Bay International, Inc. (OTCMKTS:CBYI) crashed down by 20% and closed at $0.0028. InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) on the other hand surged 14% up and broke through $2 per share. Today though they opened with a gap down and are back to $1.58.

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