The Pump for Windstream Technolog (OTCBB:WSTI) is Picking up Speed

After months of registering virtually no trading, Windstream Technolog (OTCBB:WSTI) finally showed signs of waking up at the end of May. A couple of active sessions resulted in a few ups and downs, but on the whole, the performance was nothing to write home about. Apparently, some people weren’t too happy with that situation.

Last week, investors started reporting through the internet discussion boards and social networks that they are receiving glossy brochures dedicated to WSTI and its future potential. The report has been put together by Wall Street Revelator who claim that Windstream have the answer to Tesla Motors Inc (NASDAQ:TSLA)’s prayers for cheap energy.

These are some bold claims, but taking them with a grain of salt might not be such a bad call. After all, the same people said a couple of months ago that Imogo Mobile Technologies Corp (OTCMKTS:IMTC) could “eat Microsoft alive“, but at the moment, the prospects of this happening don’t look too bright.

What’s more, the promotional budget amounts to $900 thousand which is a rather big red flag considering the huge amount of discounted stock that saw the light of day over the last few years. As we mentioned in our previous article, in 2008, the company sold a total of 15 million shares at $0.0006 a piece. More recently, they converted some debt at $0.25 per share and there are still a lot of notes which could be turned into common stock at a discount.

All in all, there’s no shortage of things that could put additional pressure on the ticker and yet, the 7% jump from Friday and the $1.28 million in dollar volume suggest that some people are willing to trust the company. The question is: “Will WSTI manage to weather the difficulties?“.

Unlike the majority of promoted penny stocks out there, WSTI is actually an operating entity which is a definite plus. They have been in the business for a while and they have some revenues in their financial statements.

The press releases also sound decent enough. Three weeks ago, WSTI announced an $8.1million purchase order coming from Jamaica’s National Utility company and earlier today, they said that they are “expanding their global reach” through numerous distribution agreements with entities located in Turkey, The Netherlands, New Zealand, Ghana, etc. All in all, things are not looking bad at all, especially considering the relatively low share price. That said, it’s not all good news.

A quick look through the latest 10-Q reveals that there’s been a 33% drop in the revenues year over year. At the same time, the net loss has grown by a whopping 261%.

Hopefully, the new deals will help them shake off the negative trend. Until WSTI show us conclusive proof of this happening, however, bearing the paid pump and all the risks associated with it in mind is absolutely essential.

Ener-Core Inc (OTCBB:ENCR) is another promoted stock that received a lot of attention at the end of last week. In a matter of six and a half hours it managed to rack up a dollar volume of nearly $440 thousand while the price jumped up by an impressive 43%. Terra Tech Corp (OTCMKTS:TRTC), on the other hand, erased a tenth of its value while investors traded more than $1.5 million worth of shares.