XZERES Corp. (OTCMKTS:XPWR) Rises on Sudden Record Volumes

XZERES Corp. (OTCMKTS:XPWR) popped in our record for the last time in 2011, until now, when the ticker went up on record buying volumes. On Friday, XPWR exploded as buying reached $1.18 million, and added more than 21% to reach 49 cents. XPWR was also last promoted in August 2011, with little impact, and continued to trade with big daily swings and low volumes. Now, XPWR may have another chance to mark a trend. XPWR1125.png

Investors’ forums are for now extremely inactive, with few opinions in the past months, and no updated activity. XPWR is a pure-play company, producing small-scale wind turbines for the low-wattage market. To its credit, the company managed to be upgraded to the OTCQB market, being a former pink sheet until September. ENIP1125.png

The company showed some improvements in its financial situation, though with certain deficits:

  • $7,813 cash
  • $4.76 million total current assets
  • $3.53 million inventories, up from 751K in the first quarter of 2013
  • $5.1 million total current liabilities
  • $1.01 million gross revenues
  • $1.95 million net lossELTP1125.png

So far, XPWR has been logging losses, but there is a hopeful increase in inventory. If this translates to sales, in preparation for a bigger future, XPWR is in for a better standing. But so far, not one bit of those fundamental news managed to translate into a stable bid. Now, the record volumes have the potential to create a more robust and lasting interest.

XPWR is a big unknown, one of those companies that could take off, but also could surprise by sinking down. Currently, the company has more than 29 million shares outstanding, but also a red-flag insider holding. One Mr. Ron Elvidge owns more than 6.4 million shares, an amount that could sink the stock, should he choose to sell off the holdings.

XPWR recalls the promise of Endeavor IP, Inc. (OTCBB:ENIP), a company that is just on the verge of success, only without true earnings. ENIP hovers below the 90-cent levels, as it tries a recovery following a deeper correction last week.

Elite Pharmaceuticals, Inc. (OTCBB:ELTP) was also vying for attention with an almost cut-and-dried pharmaceutical model. But the ticker only reached 17 cents on its upward run, sliding back to the 10-cent levels.

If you want to try out XPWR for its untapped potential, it is best to note the sluggish volumes, and not rely too far on a wildly positive run. Until the factors behind the buying are clearer, it is best to avoid investing unaffordable amounts with this selection.

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