Andalay Solar, Inc. (OTCMKTS:WEST) Goes Down For A Second Day
It was rather surprising when last Friday Andalay Solar, Inc. (OTCMKTS:WEST) surged upwards by more than 58% and arrived at 5 cents per share. But it seems that the enthusiasm showed by traders was short-lived indeed and after two days of constant sliding WEST wiped out all its gains.
Yesterday the drop was slightly lesser with another 13% lost but traded volume reached the record for the past four months number of 11 million shares. If traders continue to take profits the current downwards movement may continue and push the price even lower from its $0.037 position. And such a possibility is highly likely with all the troubles that the company has been having recently.
First they lost their licensing deal with the Westinghouse Electric Corporation and lost the right to use the Westinghouse brand. In addition WEST has to pay a total $870 thousand as past license fees. Almost the same sum they also owe to one of their primary suppliers – Suntech America, who on May 1, 2012 even filed a lawsuit against them for breach of contract. The bad news don’t stop there. The merger with Australia’s CBD Energy Ltd. that was announced more than a year ago also fell through.
Financial results for the past quarter were disappointing to put it mildly. WEST had revenues of $130 thousand from the sales of their solar panels but the cost of the goods was $150 thousand so they actually lost $20 thousand. Maybe that is why during the last shareholders meeting the authorized amount of common shares was increased fivefold – from 100 million to 500 million.
The company may present opportunities for some quick gains due to the high volatility of its stock but any long-term investments should be preceded by doing extensive due diligence. For the past 3 years WEST has been going nowhere but down losing more than 98% of its value.
You should also be careful when dealing with the stock of Pacific Clean Water Technologies, Inc. f/k/a Unseen Solar, Inc. (OTCMKTS:PCWT).The company is the latest pick of the notorious pumper Awesome Penny Stocks. The pump for Nutranomics, Inc. (OTCBB:NNRX) also ended disastrously for traders who failed to bail out on time. In just two days the stock lost more than a dollar and is now sitting at $0.43.