Being highly illiquid and not traded actively so far, SSOL shares received some attention last Thursday, though a large sell off made them immediately oversold. On Friday the climbing up began and the price surged 27.42% and closed at $0.0395. The unprecedented volume was over 97 million shares traded, but by now it is hard to be predicted how long a possible price rally can last.
On Friday, 28.5 million shares have been shorted and the sudden and enormous investor interest was obviously initiated by six different stock promoters. Most of them disclosed a compensation of $100,000 for a one week advertising services contract and it seems that their team work in popularizing SSOL shares among investors can prove successful. A bullish Harami has been noticed, which is also likely to attract a lot of traders.
SSOL had revenues of around $1.3 million in the last three months ended this June, though the costs of that sales were more than $1.16 million, which makes a very tiny gross profit and no chance for the company to get profitable with the current business model. So far, SSOL was engaged in the installation of solar power systems and management plan is to expand regionally and to acquire smaller installation companies.
Also, the company plans to procure solar panels from selected Chinese manufacturers and to distribute them under its own brand in the USA and thus become an end-to-end supplier of solar energy solutions. According to the management’s estimates, the total capital need for that plan to be conducted is around $4.5 million. Currently, SSOL has around $157,000 in cash, but the number of authorized shares of common stock was recently increased to 1,000,000,000, opening the way for following capital raising activities.
After the 10-for-1 stock split in August, which raised the number of outstanding common shares to 800 million, seems that the stock promotions are the additional means to improve SSOL liquidity and make the stock look highly attractive.
