Companies, engaged in stock promotions must be very happy with the new CEO of Cleantech Transit Inc.(OTC:CLNO). Since Mr. Alexander Holtermann was appointed on Feb.10th, cash started flowing in promoters bank accounts. The impact on the stock market is visible, but a question comes to mind – isn`t it a bit odd when promotions for just 20 days cost almost twice more than the total accumulated deficit of the company since inception? 
As usual, even if the promotion is paid for a week, the first day is when it all happens. On a related subject, this Tuesday is the first day of another promotional wave, so vivid activity on the market is likely to take place. While the stock price level has not changed much since Mr. Holtermann took charge, there has been a ground for investors to make money over the promotional waves. In the beginning of February, the share price revolved around $0.22 and yesterday`s session closed at $0.245, which is roughly 12% increase.
The truth of the matter is, though, that, in between, there has been peaks of $0.29 and drops to $0.16 as the first would be top point of a promotion, the second accounting for the cool down after the hype. Currently, the stock is heading upwards, so the only question is – what will be the top price this time before the inevitable crash? One way to assess it is by reviewing past and current promotions, another – by digging a bit deeper to see what kind of company Cleantech actually is. [BANNER]
As with most penny stock enterprises, there is the dark side and the bright side of things. On one hand, Cleantech financials are as bad as you can imagine – no revenues, hardly any cash. Actually, the last 10-K report states that, as of the end of last October, the company had no cash or other current assets. As you can imagine, the company has debt and the only way to settle it is through shares. Let alone the only way to pay anyone, whether working for the company or not, is by shares. So you can imagine there are many people who would be glad to see some catalyst pump the price up.
Nevertheless, there is hope and not only for the short, speculative investors. The company also recently announced that one of its projects will soon be completed – the Merced project. This is a 500 Kilowatt biomass-generated power plant, which is one way out from the bad financial situation of Cleantech at present. Given the incentives for companies operating in the renewable energy sectors, as well as financial benefits for others who convert their energy needs from coal to biomass and other green energy, it is possible that Merced turns out to be just the turning point for shareholders.
Until this prediction is a fact, however, Cleantech remains just one more penny stock company with an uncertain future.
