Alkaline Water Company Inc (OTCMKTS:WTER) Climbs Higher
Recently the stock of Alkaline Water Company Inc (OTCMKTS:WTER) has been gaining traction and as a result has been moving up the chart. After adding another 13.8% to its value during yesterday’s trading the stock currently sits at $0.1365. The market showed near-record for 2015 interest in the company with over 2.7 million shares changing hands, volume that is over 6 times higher than the monthly average.
Investors are more than likely showing increased support for the stock in anticipation of WTER’s annual report that should be submitted by the end of the month. The company had previously announced that the quarter ending March 31, 2015, was the strongest in the entire history of the company but no concrete results have been mentioned.
As we’ve said in our previous articles WTER is definitely not amongst the typical pennystocks. The company has a real product, the bottled alkaline drinking water Alkaline88, and is generating respectable revenues. Not only that but their sales have been growing continuously. The latest PR announced new multi-chain product placement initiatives at three major retailers in the Upper Midwest region.
Before you get too overly-optimistic let’s remind you that WTER are still far from becoming a profitable entity. For the nine months ending December 31, 2014, the company reported $2.4 million in revenues and $5.4 million in net loss.
The analyst firm One Equity Research has been trying to hype up WTER. On June 17 they released their latest report claiming that none other than Coca Cola might be interested in acquiring WTER. Well, that statement becomes somewhat less impressive when you take a look at the disclaimer of the report which shows that One Equity have received 1.5 million restricted shares from the company as compensation in addition to the sum of $10 thousand paid by a third party.
Unfortunately the company’s revenues are not the only thing that is growing. Last year options with a price of $0.01 were exercised as well as 14.8 million warrants with an exercise price of $0.10. Between March and December, 2014, the outstanding shares increased from 81 million to 119 million. As of April 14, 2015, there were 124 million outstanding shares.
The annual report is more than likely going to determine the direction of the ticker. If the numbers inside fail to meet investors’ expectations the stock might suffer a quick correction. And although it was two years ago the fact that WTER were touted by a $3 million paid pump must not be ignored.