What would you do if you owned a penny stock that was only traded every once in a while to little effect? Would you indulge in a paid advertising campaign? Maybe, provided that you did not hold any shares of Solar3D Inc (OTC:SLTD). Not because SLTD shares are immune to pumping, but because the newest promotion behind SLTD stock has been organized … by the company itself.
So, let us face it. Solar 3D Inc has not generated a single penny in revenue, yet its management has decided to invest $15 thousand of its cash reserves to raise awareness about SLTD stock among market players. Big deal, some traders would naturally say. And it would not have been so evident if SLTD’s financial situation had not been in a dire need of substantial improvement. At least, this is what can be derived from SLTD’s 10-Q report for the second calendar quarter of 2011. The document showed:
- cash reserves of $59 thousand;
- $72 thousand in current assets vs. $1,919 in current liabilities;
- zero revenue / gross profit;
- a quarterly net loss in excess of $375K.
The lack of accrued expenses casts doubt on whether SLTD actually carries out any business operations. Nevertheless, this circumstance did not prevent managers from issuing a new corporate press release yesterday, which most probably caused the subsequent promotional wave. According to the news, SLTD had finished the design of what will be the prototype of the company’s unique three-dimensional photovoltaic cell. SLTD intends to have a working prototype by the end of 2011. Whether the idea will become a reality is still unclear.
As mentioned above, SLTD’s ambitions may be admirable, but their realization requires financial support, and the company’s current financial state is far from being safe and sound. To change it for the better, SLTD management will have to not only develop the prototype in question, but also release it as a final product on the market as soon as possible.
