Titan Energy Worldwide, Inc. (PINK:TEWI) Charitable Pump Fails to Sustain Levels
After promoters at The Stock Psycho pumped Titan Energy Worldwide, Inc. (PINK:TEWI) on March 7, the stock went sky-high and gained over 450% on a daily volume that was hundreds of times higher than its average. However, despite the promises of sustained strong performance for days on end, on Friday TEWI closed 22% down.
The Stock Psycho outfit, sending subscribers picks under the alias Darth Trader as well, ran the promo on TEWI for free, a most charitable effort that was most likely intended to improve the abysmal track record of previous failing pumps. Even though in the last emails for TEWI sent in the pre-market hours on Friday spoke of how the stock will be strong “for days on end”, the crash may have caught late arrivals by surprise.
TEWI is a company that provides power generation equipment for customers in disaster situations. The March 7 pumps touted the company’s incredible increase of revenues over the previous year. For the curious, in 2011 TEWI turned yearly revenue of $14 million that turned into a net loss of $3.4 million when all the bills were paid. The first three quarters of 2012 saw TEWI log consistent net loss that had ratcheted up to $1.1 million up till September, with no official information for the last quarter.
How an increase of revenue for a company that fails to turn profit even with the first three quarters of higher revenues, and has an accumulated deficit of over $34 million is incredibly good news is beyond comprehension. The stock price of TEWI had been quietly simmering in sub-penny land for months on end before the promotion.
It’s understandable that The Stock Psycho needs a bit of a performance boost, considering how previous paid pumps by the same outfit have performed. In mid-January Stock Psycho ran a pump job on CoroWare Inc. (PINK:COWI) compensated with $400 thousand. The pump ran for exactly two sessions before tanking hard, obliterating hopeful investors’ dollars in the process. COWI is currently about 98% down from the spike of the pump, at triple zeroes.
Traders are advised to be extra cautious with promoted companies, even if they are pumped for no compensation, and take into account the track record of the pumpers, which is usually abysmal.
