CWS dropped sharply down once again during yesterday’s trading session. The total value loss was 4.30% and the closing price was $4.23 on almost twice the average trading volume. The next support level being at $4, it seems that the shares still have the potential to get oversold and lose more of their value.
Another wave of promotions for CWS stock was disclosed yesterday. The company is engaging a famous stock promoter to provide periodically investor awareness services for the stock. Promoters’ compensation consists of a $15,000 fee paid in cash and of 20,000 restricted shares of CWS stock. A coverage period of twelve months has been determined and the first promotion by that promoter has been disclosed last September.
It seems that the promotions were unable to help CWS up, neither yesterday’s published press release. It announced a new contract for CWS to supply 2,526 tons of forged rolled rings with a total sales price of $4.5 million to a Chinese wind power components producer.
The second quarter results were actually very positive and showed considerable improvement in all important parameters. It looks like either the renewable energy industry is slowly losing popularity, or there are some details about CWS that make their stock not so attractive recently.
China Wind Systems continues to dilute its shareholders. During the firsts half of the year warrants for $1.6 million have been exercised and there are another almost 4 million warrants outstanding at the end of June, along with 5 million shares of convertible preferred stock. Since the beginning of July, over 200,000 news shares of common stock have been issued upon conversion of warrants and preferred stock and additional 825,000 shares of preferred stock were granted to an investor.
