Save The World Air, Inc. (OTCBB:ZERO) Recovers After Sliding Below A Dollar

At the start of August when we last covered Save The World Air, Inc. (OTCBB:ZERO) they were just coming down from reaching the record for the year price of $1.8 per share but were still keeping at dollar and a half. Since then the ticker has been having some rough times and yesterday it dropped below the dollar mark closing at $0.94.

Today the stock opened at the same price and is showing a rather erratic performance surging up to $1.03 and dropping back down. The negative movement of the stock however doesn’t reflect the positive progress made by ZERO in last months. The company operates in the oil and gas industry but has no intentions of drilling the ground for the precious resources. Instead they offer their Applied Oil Technology (AOT) that is specifically designed to increase flow capacity and improve the safety of the commercial crude oil pipelines.

Earlier this year ZERO announced that they are in discussions seven multy-national companies for the deployment of their product. More importantly as of the first quarter of 2014 they are finally going to turn into a revenue-generating company. But it seems that investors are getting more and more concerned and rightfully so. Looking at the financial report for the quarter ending September 30, ZERO had:

$3.8 million cash
$3.9 million total current assets
$863 thousand total liabilities
$2.3 million net loss

Despite having a positive working capital the company is still in a rather problematic financial state. Their accumulated deficit has reached $85 million and even though they expect some revenues they will not be nearly enough to offset the massive losses. Not to mention that in order to continue its operations the company will have to resort to even more dilution of its stock. That is why on the annual meeting of shareholders that is going to take place on December 16, the management of the company has proposed to raise the authorized amount of common stock from 200 million to 300 million.

The company has not been part of a paid pump since October 2012 but that doesn’t mean that doing your own research is not necessary. ZERO is quite a volatile stock despite its relatively high price compared to the other pennystocks. Yesterday the stock of First Titan Corp. (OTCBB:FTTN) also dropped below a dollar and is continuing to drop in early trading today currently at $0.88. At the same time the e-cigarette manufacturer Vapor Corp. (OTCBB:VPCO) is making another impressive surge breaking with ease through $1.50 per share.