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Bull-SLTZ!
For the second time in as many months, they are at it again with Solar Thin Films (SLTZ), a habitual Pump & Dump scheme and dilution machine, that was reverse split one for 500 last April. Since August's Pump & Dump campaign ended, reported shares issued and outstanding have increased by 216%, which should give significant insight as to SLTZ's true line of business, and that is to line its masters' pockets. Looking at SLTZ's Past Performances and the current share value, we can see that bag holders from that campaign saw as much as a 44% dip in share price before a recent recovery ahead of today's start to the new campaign. We expect that the decline to recommence at a greater pace as soon as this new promotion peters out.
The new promotion comes on the heels of an announcement of a contract to build solar fields. The estimated value of the contract, according to James Solano, SLTZ's President and CEO, is $124 - $160 million. The problem is that we've seen these type of deals announced by SLTZ many times in the past, (such as this one) but we don't see the numbers reflected on the bottom line. Our lack of confidence in this latest announcement then, is certainly understandable.
The two year chart is ugly, to say the least. Almost every peak represents some sort of promotion on shares of SLTZ. The investor losses are clearly illustrated.
SLTZ Two Year Chart (click to enlarge)
Having changed its reported line of business several times over the years, the company's name has, curiously, not been changed in an attempt to mask the history of dilution, reverse splits, and losses incurred by investors. Currently, the company purports to be in the business of: (1) developing and manufacturing shipping containers using patented Fiber Reinforced Plastics (FRP) technology; (2) building housing using patented FRP technology; and, (3) developing waste to energy and solar energy projects which initially will be marketed and sold in the United States and the Caribbean. While this is a very ambitious agenda, it appears to be not very profitable, as revenues are nowhere to be found.
With listed assets at just around $111K and a book value of about -14.5 cents, we wonder how many more suckers can be duped into shares of SLTZ at its current over-hyped market cap of just under $40 million. The liabilities of almost $7 million scream that imminent dilution is inevitable and we'd be surprised if the total number of shares issued and outstanding doesn't re-triple in short order, once again making the bag holders that will result from this new Pump & Dump campaign join the ranks of the foolish. Well, at least all the dilution will make the negativity of the share book value look that much smaller.
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Be careful out there!
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