Sunvalley Solar Inc (PINK:SSOL) Yesterday’s Predicted Drop
Since April 22, when a horde of pumpers made a promotion featuring Sunvalley Solar Inc
(PINK:SSOL), it has been clear that things for their stock price wont go well. Well all that is now a fact as they dropped 30% in yesterday’s trade session from $0.013 to $0.009.
As for the financial state of the company, it shows us that it is an actual business. However, it is yet to prove itself as being profitable. Below are the numbers of most significance from their latest annual report covering the period ended December 31, 2012.
cash: $85 thousand
current liabilities: $5.4 million
revenue: $3.7 million
net loss: $1.7 million
Furthermore, the company stated in the above mentioned report that in order to continue with its business plan it will need an additional capital of $4.5 million, which will be most likely acquired through sale of stock. This hints at a future possibility of dilution.
By the end of April 22 the total amount of newsletters touting SSOL only in our inbox had surged to around 15. As we mentioned in our previous article, the disclaimers in the pump emails made it clear that this was a charitable effort and they have received no compensation whatsoever. This doesn’t mean that the pumpers weren’t adequately rewarded for previous pumps they made for other companies this month.
The ones we are referring to in particular are 1-2-3 Stock Alerts and Penny Stock Circle. They are a part of Global Marketing Media LLC and received $50 thousand for the promotional campaign they did for Massive Dynamics (PINK:MSSD) earlier this month. The pump effort lasted only 2 days on April 17 and April 18 with a significant volume of stock being traded the second day. On April 19, however, the stock started to fall from its $0.350 high and is now approximately 55% down at a price of $0.150 per share as you can see on the graph to the right.
With all this in mind, SSOL‘s stock doesn’t seem to be going well after the promotions. There has been a lot of stock dumped on the day of the pump. As we told you before, the volume of stock traded for them on April 22 is around 20 times bigger than their average trading volume.
In the meantime, while writing this article, I noticed that today SSOL started up with a higher price than yesterday’s close, but for now it keeps the tendency to go down. It is still uncertain where the price will go, however, it won’t be a surprise if they continue to fall.
