“Fast becoming the market leader in LED lighting” – this is how a SavWatt USA Inc.(OTC;SAVW) description on the company website begins. In fact, “leader” is a word often used in press releases and announcement from or for SavWatt USA Inc.(OTC:SAVW). Interestingly though, the stock performance does not exactly match that of a leader. 
On the other hand, an all-time high was reached last week. Not in terms of share price, though. Last Tuesday, more than 320 million shares exchanged hands. Yet, SAVW still sits in sub-penny levels, the Friday session closing at $0.005 per share. What is more, despite the fact that there has been nothing new coming from the company in the form of press release or announcement in the last two weeks, trading activity remains high, usually above 100 million shares in trading volume per day.
There are no SEC filings for July, as well. Neither are there any promotions. So, the trading frenzy seems somehow strange, but only until a closer look at the short-selling data for the period in question is taken. It reveals peculiar numbers. For example, most sessions last week were ones where shorters were responsible for roughly 1/3 of the total trading volume for the day. Not exactly inspiring. [BANNER]
On a related subject, the balance sheets of the company are also not exactly the catalysts for optimism among investors. The last 10-Q, for example, covering the first 3 months of 2011, includes the following:
- $27k in cash;
- $157k in total current assets;
- $2 million in total current liabilities;
- $40.5 million in accumulated deficit;
- $3.7k in revenues;
- $1.3 million in net loss;
With these numbers at hand, coupled with the uncertainty on the stock market and short-selling activity, a picture of high uncertainty might form for investors interested in SAVW.
