Save the World Aid, Inc. (OTC:ZERO) Rises on Stock Guru Email
After a year filled with natural disasters that lead to heated global warming discussions, the beginning of 2013 brought us a ticker from the ecological company sector, this time Save the World Air, Inc. (OTC:ZERO) coming up with noticeable activity. On Tuesday the stock corrected down 10% and we may expect some dynamic days ahead.
The ticker reached a three-year high this fall, yet showed a potential to correct its levels sharply within a day. Although not in active promotion, the ZERO trades pick up with press releases on well-respected business news websites. The good idea of eco-technologies goes with certain underlying strengths, but also weaknesses:
- $618,000 Cash
- Zero revenues
- $3.8 million current liabilities
With this financial record Save the World Air plans to produce and distribute fuel-economy devices, touting their qualities as “patented or patent-pending” while in reality showing no revenues and no product. The magnetic fuel economy devices that the company may one day offer are not so novel, too, being sold freely online. However, magnetic fuel savers are yet unproven to work as promised and rely on shifty science to explain their powers.
The company finances its development stage activities with new stock issues, adding a significant number of new shares in 2012 which may pose a danger for dilution and large-volume sales quickly depressing stock price. The ZERO stock also may suffer from warrants for convertible notes coming into maturity. Currently, insiders hold 3.73 million shares which may affect short-term trading with volumes a little below 3 million but rising with promotions.
The STWA Inc. ZERO stock was briefly promoted with a $7,500 budget in mid-September, and shot up to $1.90 before crashing back to 50 cents. The promoter, Stock Guru, stands out in our database with several similar promotions, helping the Growlife Inc. (OTC:PHOT) hype at the beginning of December 2012. The pump was minor and only briefly slowed the drop for this producer of hydroponic systems.
Green technologies are often encountered among small-cap companies, allowing for considerable hype and pleasant-sounding future plans. Amid the new year’s promotions is Green Energy Renewable Solutions, Inc. (OTC:EWRL), a pump that crashed quickly in November and yet continues with the occasional email to add a period of gains. In the case of penny stock eco-minded businesses, it’s best to do a research of their real activity and financial strengths before buying the hype and believing the future will be brighter.