After enjoying zero interest during Friday’s session, Xzeres Corp. (OTC:XPWR) made quite an unnoticeable return yesterday.
By the end of the first session of the week, XPWR stock had made little impact on the stock market. In fact, it eventually closed the trading session without changing a whit from its Thursday value of $0.70 per share. Volumewise, the situation was far from stellar, as well. 3542 shares of XPWR changed hands, which, while better than a string of former sessions, is well below the average daily trading volume of 10.7 thousand.
Prior to yesterday’s session, XPWR issued an official press release to confirm receipt of $1 million credit facility from Universal Funding Corporation. The news spread like wildfire among investors, which is why all the alerts that followed subsequently did not catch traders by surprise. What appeared more frustrating, however, was the disclaimer behind the e-mail alert. As it seems, it must have been a part of previous paid promotional messages as it mentions two 90-day campaigns evaluated at $2.5 thousand a day. Furthermore, the second 90-day program expired on June 15 and no other compensations have been quoted since.
XPWR pretends to be a developer of wind turbine systems and related equipment. The company is also an OTCQB member due to its transparent financial policy toward investors. Four weeks ago, XPWR filed a comprehensive 10-K annual report for the fiscal year ended Feb. 28, 2011. According to the company’s unaudited balance sheet, it has:
- $364K in cash as opposed to $195K for the previous fiscal year;
- net worth of $2.4 million;
- gross revenues of $1.49 million and a gigantic net loss in excess of $5 million.
Given XPWR’s financial health, it is no wonder why traders do not seem to have a vested interest in the company’s stock. Indeed, XPWR’s assets currently exceed its liabilities, but it has also accrued tremendous losses, which makes it very hard to predict when (or if) it will go in the black.
