Alkaline Water Co., Inc. (OTCBB:WTER): Red Alert, Investors Leave Ship

Yet again, more than 6 million shares spilled on the OTC markets for the Alkaline Water Co., Inc. (OTCBB:WTER) as the shares sank down to 47 cents, losing around 30% a second day in a row. Just as WTER seemed to have solidified the dollar price, the fallout from the promotion started. WTER had its best days of buying when the $3 million paper mailer was being distributed. But with no new PR in days, and no new emails, the reversal was steep and quick.

And while WTER seems also to pop up in web ads, this was not enough to stem the leak of investments. Last week’s buying would take a few more days to unwind, and there is no limit to the drop for WTER. When promotions fail, some tickers drop to double-zeroes and never come back, while others hover at better positions, and sometimes even make a significant comeback.

Along with the paper report, analyst Francis Gaskins appears in a web video, supposedly recast with several major business television channels. The video has just 7,500 or so views, hardly enough to ensure a sustained investors’ interest.

Sadly, WTER did not manage to become the favorite of celebrities, and earn widespread fame. In that, WTER used an approach not uncommon for penny stock companies. The paper mailer compared WTER to the True Religion brand, a small fashion house that became famous for being tied up with the movie industry.

So while WTER is still flowing around the internet, and at a low enough price may cause a return of interest for bargain-hunting, the pump is definitely past its prime.

The brand that also did not manage to copy True Religion completely was Lot 78, Inc. (OTCMKTS:LOTE). The fashion company tripled its price about two weeks ago, but is hardly holding on, losing half its value in a series of small daily slides, to shrink from 30 to 14 cents.

As for Bebida Beverage, Inc. (OTCMKTS:BBDA), it has turned into a short-term speculative ticker, sinking deeper into double-zeroes, but even there giving hope for short-term gains. Currently, BBDA stands around $0.0025, after a long slide. While a return is possible at any moment, the corrections are also painful.

If you still want to choose a bargain price for WTER, keep in mind that the loss of confidence is very strong right after the end of a promotion. Choose your timing well and do not fall for the marketing hype unless you are able to afford losses like the ones in the past two days, or even worse.