The Alkaline Water Co., Inc. (OTCBB:WTER) Retreats a Tenth

The Alkaline Water Co., Inc. (OTCBB:WTER) is clinging to its new range a bit below 40 cents, as it lost 10% on Thursday, but opened with buying on Friday. WTER cannot even last a day without the boost from a press release, and the ticker suffers from great downward pressure. WTER slid back to 35 cents on dollar volumes of above $683,000.

As usual, investors’ forums are overrun with repetitions of the WTER PR messages, touting the products and the growth prospects. Yet the ticker has been unable to make a true recovery to the positions at the height of the promotion. WTER was one of those stocks which kept up relatively high positions even after the paper mailers and emails slowed down, but still offers stagnation and modest growth, despite the hints at longer-term promise.

Little more could be said about WTER except that the ticker still has the potential to draw in inveterate investors, as it has all the trappings of a relatively promising company. It is especially dangerous that WTER is crashing slower, with some good weeks of gains, which keeps interest and loyalty.

The biggest red flags around this company are the over-zealous PR messages, and the still small sales. The stock price went ahead and boomed before the company had shown any value.

WTER lines up among companies such as Lot 78, Inc. (OTCBB:LOTE), businesses with a good initial idea, which however were used to boost a stock price and reach profits through the OTC market. LOTE was legendary for reaching a phenomenal price of $23 before a split and a loss of 99% of its value.

Elite Pharmaceuticals, Inc. (OTCBB:ELTP) is doing no better, despite a more solid business. Disproportionate interest bloated the ticker, and now the correction is ongoing and rather severe. In the last three days, ELTP retreated by a third, burrowing below the 10-cent levels.

For WTER, the lower price may mean increased volatility and daily fluctuations that may prove beneficial. In the days when WTER was around the 50-cent levels, trading alternated almost predictably sessions of buying and selling. But those calmer sessions were interrupted from time to time by days of more dramatic loss.

If you still identify a price as a buying opportunity, keep in mind the corrections for WTER habitually run down to 30%, and invest accordingly.