Windstream Technolog (OTCMKTS:WSTI) Sinks Like A Rock
The stock of Windstream Technolog (OTCMKTS:WSTI) continued with its depressing performance during yesterday’s trading. For a brief moment the ticker managed to resurface and trade in the green but it quickly came crashing down closing at $0.0331 for a loss of over 17%. This latest correction took place on the near-record amount of 9.19 million traded shares.
As has been the case recently during the session yet another 52-week low of $0.028 was posted. The chart performance of WSTI has been truly disastrous and investors who bought in around the highs posted in April when the stock spiked above 40 cents per share are now facing losses of more than 90%.
The last PR published by the company came on May 5 and it announced that India’s Ministry of New and Renewable Energy has approved WSTI to be one of the participants in a new project entitled Small Wind Energy and Hybrid Systems (SWES). In the same press article the company finally informed investors about the progress of its manufacturing facility in India. The facility was expected to be opened during the first week of April with the first SolarMill products being ready by the early second quarter of the year. Well, apparently there have been some significant delays because now WSTI expect that the first products will be available in June.
If the company manages to expand its operations they could hope to reclaim at least some of the ground they lost. For now though WSTI’s financial results could be viewed as rather depressing. The company finished 2014 with:
• $594 thousand cash
• $5 million total current assets
• $9.99 million total current liabilities
• $1.7 million annual sales
• $11.3 million annual net loss
With a working capital deficit of nearly $5 million, massive annual net loss and around $560 thousand in gross loss (this means that WSTI spent $2.3 million in order to generate the reported $1.7 million in sales) the picture is grim indeed. It gets even worse when you add the outstanding convertible notes that could be turned into millions of discounted shares into the mix.
By Friday WSTI should submit their financial report for the first quarter of 2015 and it should determine the direction of their stock. The report is going to reveal just how profitable March really was, previously WSTI announced that March was the best month in the entire history of the company but they didn’t disclose any concrete numbers about sales or revenues. If the financials show some improvements the ticker might be able to at least stop wiping more and more of its value.
