Water Technologies International, Inc. (OTCMKTS:WTII) Falls on its Face Amid $30 Thousand Pump

9WTII_chart.pngProviding drinking water to those in need is a noble venture. Water Technologies International, Inc. (OTCMKTS:WTII) is a company that claims to do just that, with its patent-pending tech and water generators that suck humidity out of the air to turn it into clean water. Sadly, the company’s performance alone was not enough to attract sufficient investor attention and about a dozen stock promoters launched a new round of touts for WTII on Monday evening.

WTII stock opened with a gap up yesterday, then less than half an hour into the session took a nose dive and closed the day 15% down despite the best efforts of promoters. The pumps only effected volume, as after weeks of anemic trading WTII shifted 35 times its average daily amount of shares.

The promoters pocketed their $30 thousand, as revealed in the disclaimers of the pump emails. In addition to this cash compensation, the pumps contained so-called ‘research reports’ on WTII that were really pumps within pumps. The parties that compiled the reports disclosed receiving $2,500 in cash and 1.5 million shares as compensation.

On the financial side of things, WTII is not looking exactly stellar either. Here is a brief rundown of the numbers posted in their latest report – a yearly for 2012:

  • $5 thousand in cash
  • $195 thousand in current liabilities
  • $425 thousand in yearly revenue
  • $795 thousand in yearly net loss

While it’s commendable that the company managed to grow its revenue from a mere $5 thousand to nearly half a million year-over-year, WTII seems to have been very generous with stock payments in 2012 and the bottom line was an even greater yearly net loss. Over 2012 the outstanding shares have gone up from 62 to 103 million.

UOMO_fail.pngPenny Stocks VIP, who were among the Monday evening promoters for WTII came up with a half-mouthed excuse for the poor performance of the pump, more or less blaming traders who played the pump that they didn’t read the pumper’s ‘lessons’ for gap up situations. Penny Stocks VIP came up with other failing pumps in the past. One recent example is a pump job on UOMO Media, Inc. (OTCMKTS:UOMO) where the promoter arrived late to the party and offered the pick just as the company started its downward swing.

Traders are advised to do their own research and never trade on paid pumps and paid ‘research reports’ that are anything but.

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