WINDSTREAM TECHNOLOG (OTCBB:WSTI) Pushed Higher by Pump
Just a few weeks ago the stock of Windstream Technolog (OTCBB:WSTI) was completely ignored by the market and saw absolutely no trading. At the end of May the company issued a rather positive PR in which they announced that Jamaica Public Service Co., Jamaica’s National Utility company, has made another purchase order totaling $8.1 million in addition to the previous order of $14,5 million and although the news caught the attention of some investors traded volumes remained minimal.
All that changed last week when WSTI became the target of a pump campaign with a disclosed budget of $900 thousand. For now the promotion is being carried out solely through a hard mailer but its effects have been profound – the stock began rapidly climbing the chart on ever increasing volumes.
Yesterday it logged in a gain of another 12% and closed at $1.69. During the day it also posted its new 52-week high of $1.75. Even more impressive were the 2.2 million traded shares that are nearly four times bigger than the average for the company. With the recent surge in share price WSTI now commands a market cap of $143 million but is such an impressive valuation even remotely connected with the reality of the company?
Well, WSTI certainly stands apart from most of the other pennystocks. The company has real operations, offers two products – the TurboMill and the SolarMill and is generating revenues. Unfortunately their financial results are that of a typical pennystock. According to the latest quarterly report WSTI finished the period ending March 31 with:
- $13 thousand cash
- $2.2 million total current assets
- $4.1 million total current liabilities
- $237 thousand revenues
- $792 thousand net loss
The extremely limited cash reserves and the working capital deficit of $1.9 million are accompanied by a close to 33% decline in revenues and a 361% increase in net loss compared to the same period last year. As we said in our previous articles investors should also keep in mind that there have been quite a few shares issued at prices significantly lower than the current market price. The company also has a $1.4 million note agreement that matures on August 1, 2016. Last year WSTI failed to make the required payment and for this year they will have to pay close to $400 thousand.
Without the artificial hype created by the pump campaign the current inflated prices may be impossible to sustain. Even as a 
pump play WSTI has already made a significant climb and chasing after it may not be the best choice.
pump play WSTI has already made a significant climb and chasing after it may not be the best choice. Yesterday the stock of NYBD Holding Inc (OTCMKTS:NYBD) made another impressive jump up the chart after it added more than 44% to its price and closed at $0.0013. CYNK Technology Corp (OTCMKTS:CYNK) on the other hand suffered a massive crash and wiped 30% of its value dropping down to $2.95 per share.
