Windstream Technolog (OTCMKTS:WSTI) Sinks Deeper Into The Triple Zero Prices

This Tuesday Windstream Technolog (OTCMKTS:WSTI) announced that it has commissioned Phase 1 of its 2 megawatt project in Argentina. This means that 500 kilowatts of the company’s PowerMill product are now operational. How did the market react to the news?

On that day WSTI dropped by 5.6% followed by a crash of 20% on Wednesday and 25% yesterday. That is right, yesterday WSTI wiped a quarter of their value and as a result they are currently trading at $0.0006 per share. Why such an encouraging development was not unable to push the stock upwards but now WSTI is hurtling down the chart at an even faster rate?

The answer is quite simple – dilution, crushing dilution of the common stock. When we last wrote about WSTI back in July we warned you that at the end of the first quarter of the year WSTI had nearly $3.5 million in outstanding convertible notes. Between March 31 and July 24 the outstanding shares of the company more than doubled growing from 88.6 million to 196.2 million. Since then the situation has become even more depressing.

As of August 11 there were 244.3 million outstanding shares, as of September 23 that number had reached 361 million shares, on September 30 there were 392.9 million, while the latest 8-k form revealed that as of October 8 the O/S of the company was 467 million shares. Keep in mind that WSTI has an unlimited amount of authorized shares.

The financial report for the second quarter of the year didn’t do the company any favors, either. According to it as of June 30 WSTI had:

• $147 thousand cash
• $5.4 million total current assets
• $10 million total current liabilities
• $120 thousand sales
• $1.27 million net loss

During the quarter in order to generate the reported $120 thousand in revenues WSTI actually incurred cost of goods sold of $260 thousand resulting in a gross loss for the period of $140 thousand. In addition WSTI still have massive working capital deficit of $4.6 million.

The depressing financials and the massive dilution devastated the share price of the company and from a spike to 40 cents per share in early April currently the stock is down by 99.58%. It should be obvious that with more and more shares being printed almost daily WSTI is an extremely dangerous choice. Do extensive due diligence if you are determined to trade the stock.