Sauer Energy, Inc. (OTC:SENY) glorious rise over six consecutive trading session was followed by a sharp downward correction yesterday. There were no promotions on place this time, only press releases promising first sales for the company.
Yesterday, SENY entered the market with a gap down and dropped below $0.50 shortly after that. Thus, the share price momentum that started a week ago could not be extended, but yet within a week SENY had added a lot value and has overcome the $0.60 level. The last promotions from July this year had almost unnoticeable effects on the share price and the trading volume, but this time the PRs have managed to make SENY rise up.
The session yesterday closed with a decline, however. The new closing price of $0.54 is a 7.85% decline from the previous close, while the trading volume was also much smaller.
Last Wednesday, the company announced that it would start the commercial production of its WindChargerTM in November 2011, which would soon transform SENY into a sales and marketing company. On Tuesday this week, SENY said then that it has opened the application process for distributorships and would soon start building a distribution network.
That news got the market excited, but as seen that excitement could not hold that long. The company has now a market cap of over $41 Million, while its total assets were less than $290,000 at the end of May this year. Thus, SENY current market valuation seems high enough, even if the potential of the company’s technology is there.
