Alkaline Water Co, Inc. (OTCBB:WTER) Chases $1 on Production News
Alkaline Water Co, Inc. (OTCBB:WTER) is making a serious bid for the $1 levels, with a neat trend of small daily climbs, fueled by increasing buying volumes. We were expecting that WTER would start to shed cents as the paper and email promotions got old, but for now the final sentencing is delayed, and WTER may surprise us. WTER grew by 30% since the beginning of September, adding more than 11% on Tuesday on volumes above $3.3 million to reach $0.912 per share. 
WTER was still active with news of distribution and production, stating that it sent a letter of intent to buy the North Cove Bottling Plant. Production is supposed to start by the end of the year- although there is no indication of the size of the deal, and how it would be paid.
And to further boost interest, WTER mentioned a distribution to 48 stores in Arizona, although there is no way to know the size of the potential sales from those stores.
WTER saw its last emailed promotion on August 28th, from SmallCap Network. The days since then were propped, as we said, by the press releases, as well as the ongoing spread of the $3 million paper mailer campaign, a lengthy and official-looking document.
Financially, WTER still hopes for the effect of the stores and the bottling factory, as it holds some deficits:
- $384,700 cash
- $580,662 total assets
- $37,762 total liabilities
- No revenues
- $182,487 net loss
All of this may be significantly better than other small cap companies. However, this is no guarantee of how long WTER could keep up the high levels. Still, the $1 levels seem like a good attractor in the next few days.
But a dollar was not a lucky spot for Montalvo Spirits, Inc. (OTCBB:TQLA), an almost similar case except for the drink offered. This tequila company also came on hot with a combination of a paper campaign, emails and promises of wide distribution, but slid quickly by 60% and is now making a small arc of recovery.
As for rebounces, here is what happens when one of those overly hyped companies attempts one: a classic dead cat bounce. Lot 78, Inc. (OTCMKTS:LOTE) managed to jump by more than 200% in a day, only to crash by 50%, again costing investors money and stress.
If you still believe WTER has somewhere to go, please do your own research of the ticker’s potential for a sharp correction, and do not invest unaffordable sums.
