For close to two weeks the stock of Windstream Technolog (OTCBB:WSTI) climbed up the chart without even slowing down. Starting from $0.95 on June 7 the stock rose by 236% and posted a high of $2.25 shortly after Friday’s opening bell. Such price levels proved to be too much for the company though and for the rest of day WSTI wiped over 34% of its value and closed at $1.35.
In our previous articles we warned our readers that the only reason for the positive climb of the stock was the paid pump. With a disclosed budget of $900 000 the campaign featured a hard mailer that was being distributed among investors’ mailboxes and it certainly managed to boost WSTI
to unrealistic prices.
may have real products and operations but they still are in a rather depressing financial state. At the end of the recent quarter the company reported the following results:
• $13 thousand cash
• $2.2 million total current assets
• $4.1 million total current liabilities
• $237 thousand revenues
• $792 thousand net loss
Speaking of official filings diligent investors found out that WSTI
put a photoshoped image in the latest 10-K report. The picture in question can be found on page 20 and it depicts a solar installation on a highway road. Apparently the picture has been taken from the website of an old man who likes to take long walks around Sydney.
The risks around the stock become even bigger when you combine them with the millions of extremely cheap shares issued in the past. In 2008 15 million shares saw the light of day at just $0.0006 while more recently a lot of shares were issued as a conversion of debt at $0.25 each.
An hour before the end of Friday’s session the management of the company decided to issue an official statement about the
situation in which they denied having any connection with the currently ongoing pump. Investors were not impressed though and the statement failed to even slow down the fall of the stock.
After the weekend WSTI
is continuing its downfall losing another 25% and currently trading around the dollar mark. At the same time the stock of Virtus Oil and Gas Corp. (OTCBB:VOIL
) is climbing higher sitting 5% in the green at $1.35 thanks to the artificial hype generated by a landing page touting their stock.