Sauer Energy, Inc. (OTCBB:SENY) Continues with Strong Streak
In the past week, Sauer Energy, Inc. (OTCBB:SENY) seemed more and more attractive each day, with rising buying volumes, roughly a million shares acquired each day. With this, the ticker ended up at 24 cents, after rising more than 40% on Thursday. Given that the last promotion email landed a year and one month ago, and the release of financial results happened early last week, SENY seems to be keeping up well. 
In the past three years, SENY has traded between $1 and a low of 10-12 cents, so its current levels are encouraging, and the volumes, while not a record, are having a remarkable period. In the past days, SENY came up with bullish statements, expecting good performance of its wind turbine business. But the past record show SENY does not fare well after promotions, as it fell by more than 66% following the March 2012 mailers. 
- Let’s look at the latest report and see if there is anything in it to inspire interest:
- Zero annual revenues
- $47,000 cash and cash equivalents
- $17,000 total current liabilities
- $1.7 million annual net loss
On the good side, SENY is not burdened by debt from its development of wind turbine technologies. On the bad side, the company accumulates losses as the technologies are still far from the markets. Given that the company was established in 2008, the final product indeed has taken a lot of time to materialize, and in the meanwhile SENY managed to get the benefits of a promotion.
SENY promises it has already contacted potential distributors, but it is in the process of acquiring financing to start market operations. Time will show if the financing will produce the desired effect, but the same activities back in 2011 did not results in sales of the turbines, ranging around a price of $17,000.
Alternative sources of energy are hot on the OTC markets now, as still high oil prices make the business model look attractive. One of the more heavily promoted tickers is Eco-Trade Corp. (OTCBB:BOPT). But this selection did not work well for the investors, as selling depressed the stock by 90% after a short climb. Now BOPT slid down to 4 cents from a recent price of 39 cents.
While SENY may take another development, it is good to be aware that much-hyped tickers are prone to disproportionate moves and plan your investment accordingly.
