Suddenly, SavWatt USA Inc. (OTC:SAVW) started the fall. After a tremendous gain on Monday, yesterday the stock broke up
the climb and lost 20% of its price on traded volume of $7 million shares.
Apparently, traders either lost faith in SAVW, or they are discouraged by the lack of news about the company and its bad financials.
In fact, the latest announcement by SAVW came up a week ago as an update for the shareholders. The announcement informed them about the company’s plans during this month, as well as on some projects it has planned. Among these were a newly formed European subsidiary SavWatt Europe, Inc., which will be based in the UK. A couple of distribution agreements with two Korean companies and the opening of a new facility scheduled for June this year have been announced.
These days, SavWatt is supposed to showcase some of its products at the Lightfair International in Philadelphia, so further details on the company haven’t been published yet. Meanwhile, SAVW keeps falling down and it is interesting how far it may go.
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. The company has not filed its 10-Q report yet, however, its annual results are crystal clear.[BANNER]
According to the 10-K, SavWatt is dependent upon a number of factors to generate profit, which however, include plenty of risks. Moreover, the report is full of losses, huge stockholders’ deficit and significant portion of liabilities. In the meantime, SavWatt keeps selling its common stock at large.
Due to its poor financials, SAVW has determined that it cannot continue with its operations as outlined in its original business plan. Therefore, the management has redirected its focus towards identifying and pursuing options regarding the development of a new business plan and positive cash flows. However, until SavWatt raises additional capital it won’t be able to fund its operations.
