It is all good news about 3Power Energy Group Inc.(OTC:PSPW) these days. No matter what happens, no matter the few different opinions in place. Currently, another upward trend is forming, based on the rumours about dream revenues, NASDAQ listing and the obscene amount of money that can be made by investing in the company now. Unfortunately, there is always a flip side to the coin. 
On one hand, things really seem to be going well for the company. On the stock market, high volumes of traded shares are presented in all sessions since the end of January. The price has more than doubled in value since then, closing at $0.33 last Friday. At first sight, the reason for this is the announcement that 3Power Energy will acquire Seawind International. The actual reason – that, through this acquisition it will come in touch with contracts for EUR 4 billion.
Here is the chain of relations that leads to these numbers. Rudana Investment Group AG signed a contract in 2010 for the above amount in EUR with the Albanian government. The contract is for the construction of a refinery and hydro power plants – the second one being the main line of business for Sunwind. Since Rudana owns 69% of 3Power Energy, people speculate and hope that Seawind, thus 3Power, would be executing the construction on these contracts. Yet, as mentioned, there is a flip side to this coin. [BANNER]
First of all, it is an interesting fact that a company with $250 in cash, according to its latest 10-Q statement, can purchase another which works with clients like Shell, Anglo American, E.ON and has cumulative revenues of more than $60 million for the last few years. Naturally, this could be done through issuing new shares, which is of consideration to current and future shareholders. Another peculiar fact is the announcement from last February 2010, about the gross revenues that could reach over EUR 100 million for the same year. According to the CEO Mr.Vergnies, this demonstrated the effectiveness of the company strategy. The last SEC filings, unfortunately, don`t exactly match these expectations.
Mr.Vergnies is actually an interesting part of the general picture. He also managed a few other companies in the past, which developed in a peculiar way, which you can read about here.
Having the above in mind, it is fair that high hopes are associated with this company. If, indeed, through Seawind 3Power gets to operate the government contracts for $4 billion, there is a possibility for NASDAQ listing at some point in the future. Until that time comes, however, until clear evidence exists of increasing revenues from operations, the future of 3Power remains one of uncertainty.
