Buyers Return for Alkaline Water Co., Inc. (OTCBB:WTER), $3 Million Promotion Promised
The promotional emails for Alkaline Water Co., Inc. (OTCBB:WTER) seem unique in inspiring robust buying, and always getting willing investors back after a sell-off. The selling on Tuesday seemed much like the temporary events in the past weeks. On Wednesday, WTER grew a tame 3.5% to 59 cents on volumes above $730,000.
In total, 10 emails mention WTER, for a total promotional budget of $63,000. Initially, WTER was mentioned in a free promotional series, but a slew of promoters received various compensations. And it seems like the promotion, funded by Winning Media, might be here to stay. There are $3 million set aside in total for the promotion, so we may expect it to be thick and widespread, taking care to support WTER all the way.
Now, the next decisive period for WTER will be the end-of-week hours. And in the longer term, it will be the ability of WTER to prove that its distributional efforts have not been in vain. So far, the company managed to climb to the following financial position:
$384,700 cash
$580,662 total assets
$37,762 total liabilities
No revenues
$70,131 net loss
On the plus side, WTER was not shot up to unsustainable heights, which does not immediately guarantee its positions. Still, a high price reached quickly holds much more potential for sudden and deep losses.
Montalvo Spirits, Inc. (OTCBB:TQLA) has been an example of this, and now the downward bidding took the ticker to a third of the price before the promotion. TQLA lost more than 18% on Wednesday to stand at 32 cents, with peaks of $1.05 while the messages landed at the feet of investors. While TQLA was not raised too high, and seemed to be in a harmless sideways drift, all it took was a few days without messages, and the ticker tanked.
As for Winning Media, its stock selections are far from winning, once the promotional budget runs out. The paying party looked after loud promotions such as that of Trulan Resources, Inc. (OTCMKTS:TRLR). The ticker was already depleted by a previous promotion, but Winning Media lifted it up for a dead cat bounce, and now TRLR is far from the May levels, headed to below a cent.
While WTER is potentially supported by a long promotion, we never know when the effect may turn around, and cause massive selling. It is best to do your own due diligence of this company, and not invest unaffordable amounts of money.