Solar3D, Inc. (OTCMKTS:SLTD) Still Going Strong
Solar3D, Inc. (OTCMKTS:SLTD) started this year with a blast and has been gathering momentum in an upward direction for more than two weeks now. The company is keeping the hype surrounding their stock with regular press releases, but how long can this last.
In just over 2 weeks SLTD‘s stock has gained some 131% in value on above average volumes. The company also announced that the acquisition of SUNworks will probably go according to the previous press releases, by the end of January and listed that the future subsidiary’s revenue for 2013 is estimated to be more than $7.5 million with pre-tax income estimates of almost $1 million.
We are quite interested on the terms of the acquisition agreement, since SLTD‘s latest financial statement, covering the period ended September 30, 2013 looked like this.
- Cash: $98 thousand
- total current assets: $103 thousand
- total assets: $132 thousand
- total current liabilities: $2.4 million
- revenues: $0
- net loss: $1.4 million
The most probable way for the acquisition to take place is through issuance of shares, but if SUNworks indeed has such numbers in its books the amount will be quite large and will surely cause serious dilution. SLTD hasn’t said anything more specific about the agreement to this moment and we reckon that the reason for that are the terms.
Nonetheless, their stock is still running up the charts and closed last week with a good 24.53% gain at $0.066 on nearly 4 times the average volume. In the end of the number of traded shares came to 4.6 million and the estimated dollar volume was $276 thousand.
However, how long can such a run last. It may pretty well turn sour when the terms of the agreement become public and turns out they aren’t to the liking of the shareholders and we might see a serious correction.
This is the exact reason for which we would advise you to always do your due diligence and weigh out the risks, especially when dealing with companies that are yet to produce any revenue, let alone become profitable.
Growlife, Inc. (OTCBB:PHOT) is still commanding great attention as seen by the volumes of traded stock and the generated trade value, despite the fact that it is still sliding down the charts. Cannabis Science Inc (OTCMKTS:CBIS) on the other hand managed to reverse its direction and closed Friday’s session with a 21.69% gain.