WindStream Technolog (OTCMKTS:WSTI) Suffers Another Painful Correction
During yesterday’s trading the stock of WindStream Technolog (OTCMKTS:WSTI) continued to crash down the chart this time losing another 13.8% of its value and closing at $0.0405. The letter to the shareholders that was issued on May 19 did manage to lift WSTI upwards but the positive momentum lasted for only two days and after yesterday’s trading the stock has wiped all of its gains.
It seems that investors are reluctant to put their trust in the company. Well, when you take into account the rather serious red flags that surround the stock the negative chart performance becomes far less surprising. March was announced as the best month in the entire history of the company but despite that their financial state remains extremely depressing. The quarterly report covering the period revealed that at the end of March WSTI had:
• $192 thousand cash
• $4.7 million total current assets
• $10.2 million total current liabilities
• $968 thousand sales
• $987 thousand net loss
The revenues did indeed enjoy a massive increase but that doesn’t mean WSTI have stopped taking on more convertible debt. On the contrary, $450 thousand worth of convertible notes were sold during the quarter bringing the total amount of convertible notes payable to nearly $3.5 million as of March 31. In April WSTI sold another $200 thousand new convertible notes.
Since the start of the year 13.7 million shares have been issued through conversions at an average price of just $0.031. As of May 12 WSTI had 112 million outstanding shares. Keep in mind that the company actually has an unlimited amount of authorized shares so they can issue as much as they want.
Even if you believe in the potential of WSTI’s SolarMill and TowerMill clean energy solutions you shouldn’t approach the company without doing your own due diligence.
