280% and its traded volume jumped over 61 million shares. Having checked the records, it is easy to say what has caused the stock spike – positive press releases and promotions.Yesterday, SavWatt USA Inc announced it has signed a 10-year-lease for a new state of the art facility called SavWatt’s Eco Hub. Its official opening was planned for May this year. Apart from this news, the company reported it has received an approval to install its Eco-Pole at the Baltimore Science Center and entered into an agreement with the investment banker BAUHAUS CAPITAL, who will assist SavWatt in developing an EU distributor strategy and in the funding for the company’s products.
After releasing the good news portion, SAVW stock price was pumped up even more by a number of promotional alerts. The stock appeared on different websites, which pointed it as a good investment choice and immediately pushed up its price. Though, having in mind the fact that the average volume of SAVW is about 3.43M, it is interesting how long the current up move will continue.
SavWatt USA Inc., formerly Ludvik Capital, Inc., is a development-stage company planning to capitalize on the commercial and consumer market for energy-efficient LED lighting by investing in product and corporate marketing. In 2010, the company used to trade 10 times higher than at present, however, since November the stock price has moved down.[BANNER]
Unfortunately, the financials of SavWatt don’t look promising at all. According to its 10-Q report, the company’s liabilities are approximately 7 times higher than its total assets and the stockholders’ deficit is over $1 million.
Considering the fact that SAVW’s accumulated deficit during the development stage is already higher than $37 million, the company’s future doesn’t look bright at all. As SavWatt has not begun generating revenue yet and experienced recurring net operating losses, its continuation is highly dependable on additional capital, which however, cannot be guaranteed.
