Alkaline Water Co., Inc. (OTCBB:WTER) Shaky with Two Selling Days in a Row

Life cannot go on without water, and there is some evidence that Alkaline Water Co., Inc. (OTCBB:WTER) cannot thrive without a promotion. For the first time since its promotional period, WTER is having two days of selling in a row- which poses a question where WTER will go after the long Labor Day weekend.

In total, WTER was mentioned in 10 emails this month, worth a budget of $63,000. The last email landed on August 28th. And the last PR message is also a few days old. This made WTER slide further, on rather slim selling, around $159,000. The ticker now stands at 55 cents, and the final result of all the publicity efforts is a mere 10 cents net gain.

But things could be worse. WTER recalls the track of one promising company, Montalvo Spirits, Inc. (OTCBB:TQLA) that could manage actual distribution, but lifted its stock to disproportionate levels through a paper and email promotion. TQLA moved around the dollar levels, and now fell below 30 cents.

WTER may not be over yet: its promotion, by paper and email, is priced at a total of $3 million, so we may expect the paper mailer to continue to rile up investors for a while. And after a breather, buying may continue. Still, WTER never showed a predilection for fast climbing.

What is amazing is that WTER is promising to repeat the success of fashion company True Religion, a stock market wonder and a popular culture icon that shot through the roof as celebrities wore its brand of clothing. Now, if a celebrity is hypothetically noticed with a jug of alkaline water (a new health fad), possibly WTER could make a big win.

Instantly, this reminds us of another company that compared itself to True Religion, but hardly lived up to the hype. Lot 78, Inc. (OTCMKTS:LOTE) was a small, but thriving fashion brand that gained exposure to the OTC markets, and on a $2.5 million promotion shot up to unsustainable levels, only to crash to pre-promotional prices, wiping out more than 90% of gains.

So while WTER could fundamentally offer a good thing, the official-looking newsletter, approval-stamped by investment advisor Francis Gaskins, may create disproportionate interest. And let’s not forget that Mr. Gaskins was compensated by $15,000 for the usage of his name.

For now, buying prevails for WTER, but any time we may expect the paper mailers to run out, and the stock may drift or crash. Choose your tickers only after a good due diligence, and stay away from WTER unless you want to compete for selling your holdings when all other short-term investors decide to sell.