Investors Push Solarwindow Technologies Inc (OTCMKTS:WNDW) To Record Highs

For years Solarwindow Technologies Inc (OTCMKTS:WNDW) has been developing its SolarWindow Tproduct – an electricity-generating coating that can be applied on see-through glass and flexible plastics. The coating can use natural or artificial light and can even work in shaded areas. The technology definitely sounds promising but the fact that the company had not revealed any concrete dates about its completion or commercialization was a huge deterrent for investors.

That is soon going to change though because last week WNDW announced that a webcast will be hosted on August 20 during which the company will reveal exactly how and when it plans to bring the technology to market. Participants in the webcast will also be able to ask their own questions. Unsurprisingly the news had an immediate effect on the performance of the company’s stock – last Friday WNDW surged up the chart by 17% and closed at $2.67 per share. When the market opened yesterday, however, the positive momentum had gotten even stronger and as a result the ticker simply exploded.

Investors rushed towards the stock and in state of buying frenzy exchanged the unprecedented since the start of 2014 daily volume of over 864 thousand shares. The buying pressure pushed WNDW to a close at $3.46 for a gain of nearly 30%. The dollar value for the sessions reached $2.78 million placing WNDW among the most traded pennystocks for the day. During the session a new 52-week high of $3.54 was also posted.

With the date of the webcast coming closer WNDW could continue to enjoy increased interest from the market but if you don’t already have an established position using caution when approaching the stock may not be a bad idea. Despite its impressive technology WNDW remains a pennystock venture with rather alarming financials. The latest financial report showed that as of May 31 the company had:

• $69 169 cash
• $247 thousand current assets
• $2.4 million current liabilities
• ZERO revenues
• $1.5 million net loss

Even with the $765 thousand in proceeds raised on July 9 through the exercise of 921,875 Series H Warrants WNDW’s financials simply cannot support the current market cap of more than $91 million.

Investors shouldn’t forget that the Series H warrants have an exercise price of just $0.83 which means that their owners received shares priced over 4 times lower than the current market price. As of May 31 WNDW had around 8.8 million outstanding warrants with exercise prices ranging from $0.67 to $1.37.

In order to commercialize the SolarWindow technology WNDW will need to find more capital which could lead to more underpriced shares being sold. Not to mention that if the plans announced on August 20 fail to live up to the hype investors’ sentiment could change rapidly. The extremely inflated market valuation could also begin to exert negative pressure on the stock if the excitement starts to wane. 

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