Sunvalley Solar, Inc. (PINK:SSOL) Nearly Doubles on a Dozen Pumps
Yesterday a boatload of pumpers sent tout emails for Sunvalley Solar, Inc. (PINK:SSOL). As a result, the stock ran over 100% up near the open, then slumped and wobbles its way to a close 88% up, generating almost 20 times its average volume.
The pumpers were out in force yesterday morning, with ten different outfits sending touts for SSOL at the market open. The pump disclaimers made it clear that this was a charitable effort, with zero compensation received. The pumps advertised the contracts announced by SSOL over the past few months – news releases that didn’t really help the stock climb and sustain its levels when they came out.
The latest available financial report from SSOL is their 10-K for 2012 dated December 31 and it contains the following numbers:
- $85 thousand in cash
- $5.4 million in current liabilities
- $3.7 million in yearly revenue
- $1.7 million in yearly net loss
While the company obviously does have a business and it is generating its revenues from actual products, it’s struggling to turn profitable. Revenues for 2011 were significantly higher but the company still logged a six-digit net loss. Over 2012 the company also issued over 17 million common shares to clear convertible notes issued in 2011. The yearly report also states that SSOL will need an additional $4.5 million to continue with its business plan, and that if this financing is going to take place, it will probably happen through the sale of common stock, hinting at possible significant further dilution.
The fact that the promoters handed this one for free doesn’t mean that they didn’t bag nice compensations for past pumps. Penny Stock Circle who touted SSOL yesterday morning, previously pumped Punchline Resources, Ltd. (OTC:PUNL), who crashed spectacularly and offered zero chance for any kind of profit. Penny Stock Circle pocketed $66 thousand for offering subscribers this particular fiasco.
In closing, it should be noted that yesterday afternoon promoters announced that a new pick was coming and they were pretty much done with SSOL, so today the price may continue its downhill slide that brought it 35% down from the spike near the open.
