Alkaline Water Co., Inc. (OTCBB:WTER) Sinks Faster Despite Distribution News
The Alkaline Water Co., Inc. (OTCBB:WTER) can’t hold it together any longer, and as expected, started to deepen the fall. WTER lost more than 17% on Tuesday, to slide to 17 cents, on dollar volumes of above $1.4 million. WTER has had precipitous falls in the past, and now the week has enough days left to see the ticker either recover a bit, or sink deeper, to reflect the fact that investors are losing patience with this company.
The days of selling, which accelerates significantly, has happened despite the company’s PR efforts outlining the new distribution channels. The latest news is that the alkaline water would be carried by an Oklahoma distributor, a message quite similar to older press releases. If we believe WTER, the company indeed has an impressive distribution network. Yet not even the expectation of financial results is enough to stop the selling. Frankly, we don’t expect WTER to show anything too interesting in the revenues section.
For the first time, investors’ forums look discomforting, as WTER dropped quickly during Tuesday’s trading. The forums are usually overrun with reiterations of the company’s PR messages, but now, there is panic and little desire to wait out the rough period. In the past, WTER has not recovered from some of the deeper cuts, and instead settled on the lower levels.
For now, the BUY FOR LESS distributor is just a future promise, and it did not even carry Alkaline88 on its website. Amazon.com also discontinued the sales of WTER.
We often compared WTER to Montalvo Spirits, Inc. (OTCBB:TQLA), also a higher-tier company that was heavily promoted. TQLA accelerated its fall on a few occasions. TQLA for now holds out around 26 cents.
Endeavor IP, Inc. (OTCBB:ENIP) was another company where the effect of the large promotion is easily seen. ENIP grew robustly for about a month, supported by $1 million in promotional money. But just yesterday, the ticker made its first deep fall, which will be one of many, sliding down 13%.
If you still believe a cheaper WTER is a buying opportunity, decide in advance if you can afford a deepening price cut. In the past, WTER has made decent runs within the frame of a week, but also wiped out the gains within days.
While WTER may have good intentions, it relies for now too much on stock financing and has yet to reap the benefits of the bottled water industry. If WTER indeed plans to survive, selling extra shares is a race against time, before the stock price is depressed beyond saving.