Alcaline Water Co. Inc. (OTCBB:WTER) Picks Up Again, Carefully
The market is squeezing the last drops out of Alcaline Water Co. Inc. (OTCBB:WTER), as the promotion ended a few days back. Yet a press release reminded of the company’s expansion plans, and boosted the ticker with an 8% gain on Thursday, to 59 cents on volumes above $509,000. The last email was on August 19th, and since then the ticker took its own direction. 
But all in all, the $3 million paper mailer promotion has had a limited effect. Surely, it brought the ticker out of almost no trading before August, but the price gain was modest, 50% at most where paper mailers have achieved more dramatic gains. For now, we may expect lagging effects, and perhaps a run as the ticker is still relatively low. 
The company also recently announced financial results:
- $384,700 cash
- $580,662 total assets
- $37,762 total liabilities
- No revenues
- $70,131 net loss
It is quite strange that WTER also announced it would increase production to meet demands, given that so far the records do not show water sales. And water sales may not even be the main aim, but a boost to the stocks.
Speaking of stocks, the company issued a Rule 506 exempt stocks, to Steven Nickolas and Richard Wright, president and vice president of the company. So now there are insider holdings above the 70 million shares outstanding, just waiting for the right price.
But even without such selling, the end of a promotion is a risky spot, one that could mean a sudden crash, or a slower unwinding. WTER had some greatly inflated claims, and may be in for harsh surprises.
We just need to look at what happened to an older star, Lot 78, Inc. (OTCMKTS:LOTE). Just as “alkaline water” is a fashionable product, so LOTE relied on fashion to fuel the pump. And LOTE had much luck, moving from a dollar to 23 dollars, but later dropping again to pre-promotional levels, after a 4-for-1 split. Still, LOTE reacted much better than WTER, which has been stalling.
Premier Brands, Inc. (OTCMKTS:BRND) is another heavily promoted beverage company that now seems to be under fire for overly zealous campaigning, by none other than investor activist George Sharp.
If you still believe WTER could attract investors, keep in mind that the stock reacts immediately to messages, but stagnates without them. And do not invest sums that you cannot afford to lose to a sharp correction.
