Yesterday, Sauer Energy, Inc. (OTC:SENY) bounced off the bottom with a 9% jump in the share price. The trading activity, however, was lower than the daily average with 189 thousand traded shares.
SENY fell below the support last Friday and by dropping down 10% to $0.43 it hit a new 52-week low. This setup apparently had attracted the eyes of promoting entities with the bottom bounce opportunity offered by SENY stock.
As soon as the last trading session was over, a paid newsletter featuring SENY appeared in the Hotstocked database. The promoter behind the letter was Beacon Equity, while the paying party was an entity called Landolt Holding. The total amount of money spent on the campaign was $15 thousand.
The results of the paid promotion will come into effect after the opening bell today, so investors can expect a higher trading activity for SENY. However, promotions also add more volatility to the trade, so it is not very certain what will happen with SENY share price at the end of the day.
SENY is a company which develops vertical axis wind turbines. According to the company, this technology has a great potential for the future. However, it seems that most of SENY investors don’t have the patience to wait for the future and have been running on the company for more than two months now.[BANNER]
During this period the company’s share price dropped from $0.9 to $0.47. And apart from the impatience of investors, there is another reason for this decline. It is the dilution which originates from the way SENY procures finances for its activity.
The company’s last report shows that SENY had issued additional common stock in the amount of $779 thousand during the nine months ended May 31, while $443 thousand were burnt in its operating activities.
In summary, investors will have to bear in mind the coming promotion and see what effect it will have on SENY share value. However, if the company started showing some figures in its sales reports, it would have more stable effect on its stock in contrast to the short-lived effect of a promotion.
