Alkaline Water, Co., Inc. (OTCBB:WTER) Bought Again on Private Placement News
The Alkaline Water, Co., Inc. (OTCBB:WTER) continues to be a high-appeal stock, refusing to enter the downward spiral. On Friday, the ticker was saved once again by robust buying, above $3.5 million, though the gain was small, about 14% to $0.64. More than 5 million shares changed hands on Friday. 
WTER uncovered a new private placement of shares and warrants, a total of 1.25 million shares and 1.25 million warrants to the same private investor. The immediate proceeds from the share sale are $500,000 and the new shares are valued at 40 cents. In addition, the same investors have the right to buy one share of common stock for 50 cents in the next two years.
While this may cause insider selling pressure, the valuation is relatively high and shows that WTER has the intention to go on beyond merely being a short-term wonder. Now, all WTER has to do is to prove its sales in the coming months, and perhaps the effect of renewed production in 2014.
In the past week, WTER has been volatile, yet still manages to provide rallies within the frame of a few days, adding about a fifth to its price. And for now, no one has sold off the holdings. WTER was promoted heavily until the end of September, but right now the fallout from the promotion has mostly happened, and WTER is moving on a different logic, propped by investors’ forum buzz, a reposting of press releases, Amazon.com sales and other ways to bring attention to the ticker.
But WTER is also filling up its share structure, voting to authorize a further 100 million shares at a one-cent par value, which would certainly change the game for the company, given that it has only about 79 million shares outstanding. A further 20 million shares would be handed out as incentives and awards. All of the above decisions were signed in agreement by 54% of the shareholders, owning 43 million shares, with no votes against. This raises a red flag that WTER is held closely by large shareholders who may have incentives to sell at the right moment.
At the same time, Montalvo Spirits, Inc. (OTCBB:TQLA) is a bit slacker with its promotions, and its share price offers little excitement, for now hovering around 31 cents. While the company has a longer-term potential, for now it has not managed another run.
Another ticker that for now remains a sideways drifter is Jammin’ Java Corp. (OTCMKTS:JAMN), still hovering around 41 cents.
The new week will show if WTER makes another lucrative trend, or finally the bottom gives and spills the earnings. In any case, choose your time frame carefully to avoid losing when a dramatic change of pace happens.
