The Alkaline Water Company Inc. (OTCBB:WTER) Receive A $3 Million Promotional Treatment
The newly created entity The Alkaline Water Company Inc. (OTCBB:WTER) is starting to attract attention towards itself. Yesterday nearly 2 million shares were traded which is an enormous improvement over the average volume of 67 thousand. Lifted by such unprecedented interest the stock went as high as $0.62 but just before closing time took a step back to $0.55 making a 10% gain.
The current company came into existence after a reverse merger between Global Lines Inc and Alkaline Water Corp, who were the sole shareholder of Alkaline84, LLC. The deal was completed on May 31 when 43 million Global Lines shares were exchanged for 100 thousand Alkaline Water Corp ones. And now WTER is trying to make it big by selling bottled alkaline water in bulk.
In the last two weeks a couple of PR articles have been made public announcing three specialty food brokers being hired and an agreement with three retail chains in Southern Carolina. Unfortunately we won’t know how popular this product really is until the next financial report. For now we know that the previous business plan left them with the following financials:
- $64 thousand cash
- $87 thousand current assets
- $169 thousand current liabilities
- $283 thousand net loss
With these numbers being far from encouraging the reason for yesterday’s excitement must be something else entirely. And what can be better than a pump promotion with a $3 million budget and an endorsement from Mark Wahlberg and Sea “P. Diddy” Combs (Apparently they were unable to spell the name Sean right)? Well, it is true that the two superstars were endorsing an alkaline water product but the problem is that it actually wasn’t WTER‘s product. Maybe that is why the site was taken down and is now under construction while they modify the contents of the report.
Investors should also note that there are 2.3 million shares sold for just $0.01 per share that became 34,5 million after a 15-for-1 forward split performed just a day before the official closing of the merger. The people holding these cheap shares stand to gain millions at the current prices of half a dollar each.
When and if the full-blown promotion actually starts remains to be seen but by the initial results it seems that investors are eager to jump in despite all the red flags. The current prices are way too high for WTER to support without the artificially created hype which makes doing your own due diligence paramount.
Although the Awesome Penny Stock pick – Xumanii Inc (OTCMKTS:XUII) is still among the top traded stocks, the company is unable to stop its plummet towards the bottom. The once touted target of $1 is now a distant dream with the ticker teadily closing in on 10 cents. GRILLiT, Inc. (OTCMKTS:GRLT) on the other hand are surging further up after adding 25% and closing at $3.76 yesterday.
