Alkaline Water Co., Inc. (OTCBB:WTER) Bought Up on Paper Mailer Spread
The buying volumes for Alkaline Water Co., Inc. (OTCBB:WTER) look like stairs going up, with new buying enthusiasm each day. It’s time to renew our warnings that such enthusiasm is mostly due to the promotional emails and a glossy paper that hit investors often enough. But this is to be expected- $3 million could go a long way toward a promotion, and the campaign started seriously only in Mid-August. 
For WTER, it is a question of surviving the weekend, keeping up the $1.15 levels that were achieved after adding 6% on Thursday. Volumes were a record $5.35 million. 
Message boards on the Yahoo! Landing page are disabled for now, but the Investors Hub is still abuzz with general optimism, which does not miss to mention that the main engine for now is the paper mailers that are still reaching new households every day.
And WTER seems to be big on self-promotion in other ways as well. The company recently announced it took up Ms. Brande Roderick to its advisory board, to serve as a publicity expert. Ms. Roderick is a former model of The Apprentice fame, from the Celebrity Apprentice edition. So now the presentation of WTER would have the benefit of a C-list celebrity, complete with minor TV series roles.
When it comes to hype and distribution, it seems puzzling that WTER has not offered its products through the easiest channels, online trading. While WTER promises its products have already hit shelves in supermarkets and other shops, it has no online presence. And outside the hype and a new pretty publicity person, WTER has:
- cash: $384 thousand
- total assets: $580 thousand
- current and total liabilities: $37 thousand
- revenue for Q2: $32 thousand
- net loss for Q2: $182 thousand
With all this, we wonder why indeed WTER did not start online sales. And it may be coming late to the designer water market, with already enough exotic varieties popping up in the last few months.
Looking again at similar situations, Montalvo Spirits, Inc. (OTCBB:TQLA) is making a recovery, slowly adding 30%, but hardly compensating for the drop of more than two-thirds when the promotion went quiet. Keep in mind that for WTER these wonderful days of buying may last as long as the paper mailer recruits new investors.
And for Lot 78, Inc. (OTCMKTS:LOTE) even the small recovery does not last, as the ticker slid down again to 15 cents.
In the case of WTER, the weekend may mark a division in moods before investors decide the stock has had its run. If you decide WTER can still give some value, it is best to avoid investing unaffordably, and be burned by the inevitable backturn in stock price.
