Alkaline Water Company, Inc. (OTCMKTS:WTER) Pulls Back, Promotional Effect Under Question
Alkaline Water Company, Inc. (OTCMKTS:WTER) is a new addition to the actively traded penny stocks, rising on volumes and making a small climbing tread on a large promotional campaign and several press releases. This new activity is easy to understand, given that WTER traded under a different name and ticker, Global Lines Inc. until May. On Monday, the ticker opened with a strong downward sentiment and rather rapid selling. 
And now, the company was specially promoted, with one email, but a large paper mailer campaign that usually displays a lagging effect as the landing page and the paper report spread out among investors. Some of the biggest gains and the most dramatic falls have happened after such a campaign, and the price is usually $2.5-$3 million. 
The new entity itself is nothing too special, holding financial information quite out of tune to the promotional hype:
- $64 thousand cash
- $87 thousand current assets
- $169 thousand current liabilities
- $283 thousand net loss
The next few days will show what better volumes would do for the ticker, that so far only managed to move from $0.40 to 57 cents. Other campaigns have taken shares up more than 40 times, such as Lot 78, Inc. (OTCMKTS:LOTE), which reached a pre-split peak at above $23, starting from a dollar per share. Unfortunately, soon after the stock wiped out all gains.
The company relies on a promise of its product rollout in supermarket chains. This time, it is bottled water, but another paper-mailer star, Montalvo Spirits, Inc. (OTCMKTS:TQLA) was happy to talk about its product range hitting the shelves. The water company will spread its new bottled offer to Arizona, California and Nevada.
Much like Lot 78, WTER also relied on dubious celebrity endorsement, misspelling the name of the famous rapper to Sea “P. Diddy” from Sean. While alkaline water may be the new hot wellness product, the rapper never really endorsed the WTER product line, but a similar bottled product.
If those red flags are not enough, WTER insider shareholders have more than 34 million shares at 1 cent par value, acquired after a reverse merger and a split. They could sell at any moment, even at today’s prices the gain would be immense.
WTER slid down more than 7% to 51 cents on volumes above $580,000, much more active selling and losses than previous, vaguely optimistic days. If you still want to choose this ticker, keep in mind that there is no guarantee the party won’t end so soon. Plan your investment accordingly and don’t put in unaffordable sums.
