The last few days were of vivid activity for the solar system integrator Sunvalley Solar, Inc (OTC:SSOL). Promotions for its stock took place, based on recent positive developments. The sparkling investment activity in turn caused an increase in the stock price. Yesterday, besides the exploding volume of 100 million traded shares the price went up to $0.014, which is a 75% increase in a day, or 150% for the week. Unlike the end of 2010, this time the effect was obviously worth the payments made by third parties for the promotions. 
SSOL-logo.jpgOf course, the nature of the information included was also a solid reason for investors to turn their attention to Sunvalley. Several announcements actually came out during the last ten days, regarding some solar installation contracts that Sunvalley has been awarded. The financial benefits of the contracts are set to be above $3 million  in total. 
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On the other hand, past performance on the market shows that success of this sort does not last long and is followed by a
greater free fall after every promotion or company announcement. All in all, it is extreme volatility that is most commonly associated with Sunvalley Solar, Inc. In this aspect, it is yet to see whether positive moves would be matched by changes in the balance sheet of the company. 
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According to the last 10-Q statement covering the first three quarters of 2010, the company has again not managed to produce sufficient sales in order to be cash flow positive, thus profitable. Although performing better than in 2009, Sunvalley still suffers from an accumulated deficit of $879 thousand and a negative ratio of current assets to current liabilities. This is just one reason why the company needed the promotions that took place in the last months. And one should not neglect the reverse acquisitions and reverse stock splits, which were also not quite the development shareholders were hoping for. The truth of the matter is that while skilled traders reap fortunes out of this constant rise and fall of Sunvalley stock, the great level of uncertainty actually leads to serious losses for regular investors, not exactly a good picture of the past and current situation of Sunvalley Solar, Inc.