“As promised I said I would have a new bargain for you this week, and I always deliver on my promises. So this company is trading at $.013…” This quote is from a promotional mail for Neah Power Systems, Inc. (PINK:NPWZ).
NPWZ is trading at $0.013 because it dropped 13.91% yesterday. The volume for the session was approximately 3.1 million shares.
The newsletter goes on to call NPWZ a fast mover, focusing on the May 12 spike. That day NPWZ “all of a sudden rocketed to over $.06 cents.”[BANNER]
True, albeit not the full story. The move was spectacular, but not really unexpected. NPWZ had a campaign going at the time and issued a PR on May 11. The announcement concerned a LOI for the acquisition of Exigent Security Products.
The promotions and PRs had attracted some attention, and then the company filed an 8-K which was nothing more than confirmation of the unbinding letter of intent. However, it managed to spark impressive buyers’ interest, which was almost gone the same day and was virtually all gone the next session.
NPWZ decided to go on and release some more PRs, which had a smaller, short-lived, positive effect on the price. The last three days in the red may be partially due to the 10-Q NPWZ published on May 23. It revealed the company was in a bad financial shape with:
- $9,360 cash and total current assets of $32,574
- $4,666,788 total current liabilities
- $0 revenues and $812,856 net loss
This doesn’t mean money can’t be made on NPWZ. A third party paid $25 thousand for the current promotion, and in theory, if the company manages to survive and generate some revenues, it could bring some value to shareholders.
