Sunwin International Neutraceuticals (SUWN) Moves Forward within the Stevia Markets
26 Mar 2010

Sunwin International Neutraceuticals (SUWN)Sunwin’s stock is about to reach its third subsequent peak since the middle of March 2010 and closed yesterday at $0,345, a relatively unusual increase by 7,81%. The company’s management has announced on March, 25 the official reception of “Letters of no Objection” from the FDA for 5 Sunwin stevia extract products, which are now considered safe for use in the USA.

The news affects the future development of the second of the two business segments of Sunwin: the selling of the natural sweetener Stevioside. The FDA affirmation gives Sunwin now the chance to establish new competitive advantages through working together with food and beverage companies on the development of sweetening systems that can catch up with the changing consumer tastes and preferences and go along with the low-caloric food trend.

It is the first time in 2010 on March 25 that Sunwin International pays $300,000 for a promotional campaign, however the effects of previous extensive promoting may still be holding on. The stock price shows a persistent rise from the beginning of the year with only a couple of exceptions at the end of February. Though, notably the stock is becoming more volatile reaching daily changes from 16,06% up for March 16 to 11,84% down on March 18.

Although Sunwin is filing regularly (unaudited) financial reports with SEC, its operating activity is completely based in The People’s Republic of China, which makes it not easy to follow and evaluate. The promotion can be an attempt to reduce the fluctuations and to let the stock seem less riskier for inexperienced investors. Considering the effects of earlier promotions, in October last year for example, this can be the result only on the short-term.

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