Windstream Technolog (OTCMKTS:WSTI) Sinks to New 52-week Low
The disastrous performance of Windstream Technologies Inc (OTCMKTS:WSTI) continued during yesterday’s trading. The stock actually opened at $0.078, above its previous close at $0.071, but failed to maintain this price and crashed hard wiping over 16% of its value by the end of the session. The company closed at $0.0592 just above the low of the day of $0.059 which is also the new 52-week record for the stock.
The latest financial report filed by the company showed a similarly depressing picture. It covers the financial results of the company for the entire 2014 and contains the following numbers:
• $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
It should be noted that WSTI registered a gross loss of around $600 thousand for the period. This means that the company reported cost of goods sold of $2.3 million in order to generate the $1.7 million in revenues.
An even bigger red flag however is the fact that apparently WSTI have an unlimited amount of authorized shares. With around $3 million in outstanding convertible notes at the end of 2014 and another $540 thousand sold since the start of 2015 investors could become flooded in discounted shares issued as a conversion of these notes. As we said in our previous article the annual report showed that on April 7 WSTI issued 4.6 million shares at $0.035 followed by another 4.6 million at $0.025 just three days later.
The company has published several positive PRs since the start of the year announcing new pilot projects and even proclaiming that March was the best month in the entire history of the company. At the start of March WSTI also said that they are on track to open their 50 thousand scq. ft. manufacturing facility in India in the first week of April. Since then however there have been no updates about the state of the facility.
WSTI may have two promising products in the SolarMill and the TowerMill but so far their operations have been far from impressive. The other serious red flags around the company shouldn’t be underestimated either. After hitting such record lows the stock could potentially bounce but for a more prolonged recovery WSTI will need to show improved results. Tread carefully and do your own due diligence before putting any money on the line.
