Save The World Air, Inc. (OTCBB:ZERO) Slides After Q2 Report

1ZEROchart.pngEarlier this month Save The World Air, Inc. (OTCBB:ZERO) was enjoying yet another steep climb up the stock chart. The company surpassed its previous record for 2013 of $1.50 and went as high as $1.80. Interest in the stock also rose logging in another record number for the year – 1.1 million traded shares. But following the pattern of the last couple of months it quickly reversed its movement and now it is on a 4-day losing streak.

Last Friday it dropped to $1.44 losing nearly 6% from the previous close. The performance of the stock has been mostly determined by the whims of the market without any attempts of manipulation. The last alert email for them was sent in October 2012 by the StockGuru who received $7500 as compensation. The company itself has refrained from issuing any fluff articles and is not trying to create artificial hype around itself. The latest news regarded the appointment of Mr. Don Dickson as a member of the Board of Directors.

Despite these positive traits the current price levels of nearly a dollar and a half are too much for ZERO to support. The new quarterly report issued last week not only failed to stop the slide but actually accelerated it. In it we found the following financials :

  • $4.5 million cash
  • $4.6 million total current assets
  • $1,1 million total current liabilities
  • $ZERO revenues
  • $1.9 million net loss

The company is poised to at least begin generating some revenues after the deal with TransCanada Keystone Pipeline, L.P. According to its terms TransCanada will test one of ZERO‘s Applied Oil Technology products and are going to pay $60 000 a month for the duration of the agreement. Sadly this sum is nowhere near the monthly net loss of the company and the accumulated deficit of $82 million.

The company has also been going through constant dilution of its common stock. Currently the outstanding shares are 165 million out of the 200 million authorized. Since the start of 2013 19 million warrants have been exercised at a price ranging from $0.30 to $0.40, significantly lower than the price of the stock that has consistently stayed above a dollar. For now there are another 20 million warrants with average exercise price of $0.30.

Today the stock is 5% in the green showing signs of recovery but as a whole the company remains a risky bet for investment. They don’t resort to the more speculative methods used by the majority of pennystocks and finally have a complete product. Doing your own research is still the best option because the ticker has shown that it is capable of steep climbs and equally as steep drops.

39MJNAchart.pngLast Friday almost every company operating in the medical marijuana industry got a major boost up the stockchart. The reason for the industry-wide surge was an article posted by CNN’s Chief Medical Correspondent and neurosurgeon Dr. Sanjay Gupta. In it he apologized for his previously held firm stance against the medical use of marijuana. Now he acknowledges that the plant has its medical uses and can be beneficial for the health of the patients. As a result Medical Marijuana, Inc. (OTCMKTS:MJNA) surged by nearly 40% and today are up by another 20% currently at $0.21. Hemp, Inc. (OTCMKTS:HEMP) had a smaller showing only rising by 19% to finish at $0.015.

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