As he set off for another adventurous journey, John Smith finally found himself in a relaxed state of mind. He had just turned into one of the few lucky investors to earn a profit by trading with penny stocks.Yesterday, he managed to sell all his shares issued by Windpower Innovation (PINK:WPNV) at $0.03, right before their price fell dramatically by 40%, ultimately closing the session at $0.018. Unlike many other investors, Smith did not fall victim to the huge long squeeze that took place yesterday. A total of 8.6 million WPNV shares changed hands, hitting both a 52-week high and a 100-fold increase over the daily average trading volume.
Two factors brought about that extraordinary high volume of WPNV stock: a new corporate announcement and a massive advertising campaign. The new corporate update came after a two-month informational eclipse. It informed the general public about a new finalized agreement with a southwestern enterprise. The contract is expected to grant WPNV access to the huge Texas/New Mexico region. While the collaboration really seems to be considered a done deal, the potential benefits thereof have yet to be achieved. That is why it is the grand promotional wave that might have had a bigger impact on the trade with WPNV stock. At least $80 thousand have been pooled into the development of the campaign so far. [BANNER]
Headquartered in Queen Creek, Arizona, WindPower Innovations, Inc. pretends to have specialized in the high-technology wind turbines industry. Moreover, the company claims to have the capacity to repair, re-manufacture and provide maintenance to wind turbines, gearboxes and blades. However, all these words completely lost their pompousness as soon as WPNV published its annual report for the period ended Sep. 30, 2010. As it turned out, the company declared:
- no current assets whatsoever for both 2010 and 2009;
- net property and equipment evaluated at some $167 thousand;
- no revenue and a net loss in excess of $350K.
Despite the discouraging financial picture, WPNV has somehow succeeded in finding strategic partners in quest of a breakthrough. So, if its management has the potential and expertise necessary to make a breakthrough, it may eventually come up with new optimizing solutions for the wind turbines industry. If that happens, there will definitely be much more investors turning profits on WPNV stock. Just like John Smith.
