The Stock Psycho are Going Crazy about WATER TECHN IND INC (PINK:WTII)
Have you ever thought that it’s possible to extract water from air? Yes, we haven’t either, but apparently, it is with the use of Atmospheric Water Generators, which is exactly what WATER TECHN IND INC (PINK:WTII) specializes into.
Truth be told, we find it rather hard to believe that pure 100% clear drinking water can be extracted from the air we breathe (especially having in mind how polluted it is), but then again, chemistry wasn’t our favorite subject back in school, so we’re not going to argue about that. WTII manufactures and sells the above mentioned generators, that are supposed to turn the humidity in the air around us into a totally clean drinking water. The question is: “Can they pull it off?”. We headed to their latest financial report to find out.
And we were rather irritated by it at first. WTII is listed on the Pink tier of the OTC markets which means that their reports don’t need to comply with the SEC rules. Which, in turn, makes reading it and extracting some valuable information a pain in the neck. Nevertheless, we persisted and we found some appalling figures:
- cash: $8,920
- revenue for the first 3 quarters of 2012: $37 thousand
- operating expenses for the same period: $538 thousand
- net loss for the same period: $571 thousand
Pretty terrible financials for a company that, according to The Stock Psycho at least, is on its way to hitting “well over $2” per share.
The discrepancies don’t end there. On their website, for example, WTII claim that they have a manufacturing plant and that they are ready to meet an increase in demand fairly quickly should the need arises. The financial report, however, states that they only have a research and development facility which they can use to perform tests and build prototypes. In addition to this, the facility, again according to the quarterly report, has a total size of 2,000 square feet. We don’t think that this will be enough for large-scale production, especially having in mind that the Atmospheric Water Generators are not exactly portable.
On the bright side, workers won’t be bumping into each other, despite the shortage in space. Why? Because as of September 2012 the company had a total of six workers. Half of them, part-timers. Are they enough to turn WTII into a big successful company? We’ll let you decide.
On the other hand, there is no shortage of paid pumps for WTII. We have covered some of them in the past, if you look at WTII‘s chart today, you’ll see how they have been getting on since then.
As far as post-promo performance is concerned, The Stock Psycho’s picks are among the worst . GREENWAY TECHNOLOGY (PINK:GWYT) is a prime example. They were promoted back in November and since then, they have lost more than 70%.
