Wind Works Power Corp (OTC:WWPW) is an alternative energy company which owns and develops wind parks in the US, Canada and Europe. Despite optimistic promotions and recent announcements, WWPW slipped down yesterday.
After 170 thousand shares had changed hands, WWPW closed 10.61% down at $0.295.
On Friday, WWPW announced it had entered into a joint venture with Aquavent to build a 110kV substation near its Burg I project near Magdeburg, Germany. The PR came out as the markets closed, so its effect should have been felt yesterday.[BANNER]
Additionally, promotional campaigns were going on full strength, but even the $250 thousand compensation didn’t manage to bring back the volume from last Thursday.
Of course, some people may blame the drop on the downgrading of the U.S. credit rating by S&P, and surely it did have some part in the decline. Yet, it is hardly the whole story.
The fact is that at the moment WWPW is still a risky investment. The company has no recurring revenue sources, and with the troubles U.S. and European economies are having right now, it would take a lot more than potential and equity/debt financings to give investors hope.
Furthermore, the company has some outstanding warrants and debentures, which can keep the price from rising at this point. Traders should be careful in evaluating the upside potential of WWPW, and do their due diligence.
