Providing water for the needy population of underdeveloped regions seems like a noble undertaking. However, paid pumpers touting Quest Water Global, Inc. (OTC:QWTR) stock yesterday seem to be motivated above all by their $10 thousand compensation.
While the intentions of QWTR may be admirable, one can’t help but ask the question who’s going to deliver the funding to this underdeveloped company. There are other questions which traders should ask themselves before making any rash decisions.[BANNER]
What has QWTR done so far? The company has not generated any revenues since inception and has current liabilities approaching $1 million that cannot be offset by their current assets of under $0.5 million.
In one of its filings the company says it hasn’t adopted a code of ethics. It has, however, opted to award $300 thousand worth of stock options to its two main and only officers. To be more accurate these two gentlemen, John Balanko and Peter Miele, awarded the options to themselves.
To make matters worse QWTR opted to get financing through convertible notes. One such note issued in May 2012 is for the sum of $150 thousand. Said note’s conversion is not restricted and hypothetically may have already happened.
The fixed price of $0.50 per share may seem like a reasonable measure on part of QWTR but seeing how current share price is $1.26, note holders can cash in pretty big should they decide to convert and plop their shares into the hands of hopeful buyers, effectively bagging a profit of about 150%.
In such a scenario, shareholders on the other hand will only be balling their fists in anger.
Eager investors should also bear in mind the previous picks promoter VIP Stock Alerts touted and their subsequent performance. Two such abysmal failures were the attempted pumps of LBGO and SPOW stock. The charts for those two speak volumes.
There is something to be said for providing the needy people of Africa with fresh water but QWTR may not be the party who knows what that something is.
