Tasty Trash : Helix Wind (HLXW.OB)
I wanted to like this one, I really did, as I like alt-e especially ones with urban applications. I can't vouch for the viability of the tech but they look to me to be a company that's really trying to make it in the Wind business.
That's what makes this so sad.
two weeks ago this Wind Turbine stock traded about 1k shares per day now it's 200k per day and with a pretty massive price increase
Naturally that got me curious, well that and someone spammed me twice. :(
What we have here appears to be a development stage company with probably poor chances. I can't speak for their Tech, but their finances are woefully inadequate for what they are trying to do.
They have around 1 million in assets, 300k cash on hand with about 400k in sales per quarter.
Unfortunately they also 101 million market cap (basically creating a P/S ration of nearly 100), 25 Million in accumulated deficit and a net loss of 22 million in the three months alone!
but it gets better err well worse.
helix Wind is yet another reverse shell merger (hence the sudden arrvial). You would think with all the SPACS floating around the big boards if the street tought they had a good shot at success they'd go there instead of the OTC.
They have a going concern warning!
" The Company has a working capital deficit of $827,193 excluding the derivative liability of $15,194,381, an accumulated deficit of approximately $25,050,697 at March 31, 2009, recurring losses from operations and negative cash flow from operating activities of $539,605 for the three months ended March 31, 2009. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.
...The Company plans to obtain additional financing through the sale of debt or equity securities
"We anticipate that we will need $3,000,000 for operations for the next 12 months. These anticipated expenditures are for manufacturing of systems, infrastructure, overhead and working capital purposes. Helix Wind presently does not have any available credit, bank financing or other external sources of liquidity
ie.. somebody needs to pump their stock to raise funds. and no banks will even give them a line of credit. Hmmm
Maybe they shouldn't give their top execs salaries of 200K per year until you know they actually get semi close to profitability? You know that would cut the amount they need to raise significantly to make it through the year. I know that's crazy talk, entreprenuers bootstrapping. That never happens . Nahhhh
Well wait let's not be rash, let's hear what they have to say what their business and competitive edge is.
" Overview Helix Wind is a small wind solutions company focused on the renewable alternative energy market. Helix Wind’s headquarters are located in San Diego, CA Helix Wind provides energy independence utilizing wind – a resource that never runs out. Wind power is an abundant, renewable, emissions free energy source that can be utilized on large and small scales. At the soul of Helix Wind lies the belief that energy self sufficiency is a responsible and proactive goal that addresses the ever-increasing consequences of legacy energy supply systems. Plan of Operations Helix Wind’s strategy is to pursue selected opportunities that are characterized by reasonable entry costs, favorable economic terms, high reserve potential relative to capital expenditures and the availability of existing technical data that may be further developed using current technology. "
That's it?!! That's your entire stated business plan in your 10Q? That's some vague weak @## stuff man !Why don't you state this way "we are a business and we hope to plan to make money." That would have shared just about as much worthwhile info.
They do a much much better job on their website www.helixwind.com
I've been out of the science/engineering game for a long time and I'm amazed how little I can tell whether this in on the level or not tech wise. At least it doesn't fail the sniff test like most of these OTC clunkers.
And lastly and most importantly they have used PIPES and consequently I think one of their PIPES buyer is pumping the stock. As there are mutliple reports of unsolicited phone pitches and hey I got spammed myself.
here's a lovely thread on yahoo and the lion about the stock being pumped
The comany may be a victim of circumstances in the credit market but,
I don't think I'm going out on a limb here saying the stock is badly overvalued and probably headed for a fall.
Disclosure: I have no position in the above mentioned stock but I reserve the right to do so at any time if I feel like it. Chances are I will be too lazy to do so. The above is not investment advice and should be treated as such. I am not an invetsmnet adviser, and I just said I was lazy, why would you consider taking investment advice from a lazy person? Look low float OTC penny stocks are very dangerous no matter how you play them. Just don't blame me if you do something dumb alright? It's your money, do your own research.