Building Turbines, Inc. (OTCMKTS:BLDW) Explodes With Record Volume
Building Turbines, Inc. (OTCMKTS:BLDW) is a stock that is rarely traded in high volumes and they don’t usually have trade session with more than $50 thousand in dollar volume. Yesterday, however, begs to differ, as the stock exploded in the peak of a massive pump campaign.
The promotion was initiated on September 16 and since then more than 40 emails have been sent out, touting the stock of BLDW. Promoters of all shapes and sizes are constantly creating hype around the ticker with their compensations varying from $500 to $15 thousand.
At first, the promotional campaign didn’t do much, but it finally managed to attract investor interest yesterday. The stock was selling like hot cakes and the massive amount of shares that was dumped in the beginning of the session crushed the price of BLDW instantly.
At the end of the day BLDW closed 8.91% down at $0.0419 on unprecedented volume. The total amount of shares that switched hands in the session came at 6 million and this helped generate $275 thousand in trade value.
The company is aiding the promotional campaign with press releases, the newest of which about a supposedly completed LED installation job for “one of America’s largest and recognizable dining, entertainment, gaming and hospitality companies”. They are expecting to continue doing business with the company in question, but refuse to provide any information on the project or the identity of the contractor, which makes us suspicious.
Furthermore, we are concerned about the $5 million line of credit that BLDW secured while entering the LED lighting market, because they already have a substantial amount of liabilities.
- cash: $231 thousand
- total current assets: $1.7 million
- total current liabilities: $5.3 million
- total liabilities: $16 million
- revenues: $721 thousand
- loss from operations: $975 thousand
As you can see they have low cash reserves, considering the massive amount of liabilities they have managed to accumulate. It seems that the hype won’t last long, but you can never be too sure about. We might be seeing a new promotion very soon, so anything can happen.
For now BLDW remains a very risky company to invest in, with its bad financials and the huge paid promotions. However, if you have any thoughts of a speculative play be sure to do a lot of due diligence and weigh out the risks.
On the other hand Globalstar, Inc. (OTCMKTS:GSAT) remains in the top of our list of penny stocks in terms of trade value for yesterday’s session. Joining them is Pacific Clean Water Technologies, Inc. (OTCMKTS:PCWT), who are undergoing the pump treatment with the most expensive promotional campaign we have seen in a while.
