Promoters Provide a Joyride For San West, Inc. (OTC:SNWT) Investors
16 Feb 2010

San West, Inc. (OTC:SNWT) climbed by 18.4% on intensive promotions last Friday to this year’s peak and settled at $0.13 per share. The volume burst out of almost 400% also had not been seen yet since the beginning of the year.

The stock of San West continued the upward trend that had started around two weeks ago. Friday’s promotion was not the only investor relations event for the day. The manufacturer of off-road buggies also made a press release announcing that it has made significant revenues from online sales after the inception of the partnership with online retailer The management was confident about anticipated further sales increase for the quarter.

The day before was also full of good news about San West, as the opening of a new Buggy World retail location in Southern California was announced. Buggy World has entered into a sales agreement with Joy Ride USA and according to which Joy Ride USA will sell Buggy World products. Because of “the excellent freeway exposure at a hot spot for off-road enthusiasts”, according to Bryan Britton, Vice President of San West, Inc. and General Manager of Buggy World, the new store is a great deal and will move San West forward at a lower risk in pursuing their strategic goals.

Obviously, promotions can only add to the volatility of the stock and increase the chance for extra-large profits. It seems unbelievable that investors hope San West will finally be able to earn money, as the good news were not confirmed by a corresponding SEC filing and the latest financial reports filed in the late 2008 showed that the business was not exactly flourishing:

  • absolutely no revenues from operations
  • net loss of over $27.8 million
  • stockholders’ deficit of $2.5 million
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