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New wild radar play for 3/25: SNWT
SNWT (San West Inc.): Boy is momentum really starting to come into this one! There is alot of hype on SNWT and it`s product and as you can see, SNWT is blowing past all major technical resistances and completely on fire with more likely to come here at .021! See the chart and make sure you have SNWT on your screens tomorrow! San West is an emerging leader in the off-road vehicle (ORV) industry and operator of the industry leading ORV portal, www.CountyImports.com. The Company`s web properties have emerged as the established home for all facets of the ORV industry, including off-road buggies, scooters, ATVs, parts and accessories. San West`s retail store locations in Southern California specialize in the design, manufacture, sales and repairs of off-road buggies.
Additionally, the retail and online stores provide aftermarket performance products and accessories for off-road buggies and other ORVs. Buggy repair services are sold and fulfilled at the Santee, California retail location. For further information about San West, Inc. visit http://www.CountyImports.com, http://www.BuggyNation.com, and http://www.SanWestInc.com.
http://www.pennystocksite.com/newsletters/17789-new-wild-radar-plays-for-tomorrow%20-snwt%20lexg%20/
San West Inc.(OTC:SNWT) With Mystical Boosted Activity on the Market
By Petar Ilievski
Date: Mar 24, 2011
Is it just possible that someone out there knows something I don`t - this is the prevailing thought among traders after yesterday`s intense session of San West Inc.(OTC:SNWT, SNWT message board). There are questions and rumours, but one thing is clear - the last few days were all of positive development on the stock market, yet nothing stands out to justify them up-to-date.
A quick glance at the recent stock performance and company press releases would make this week`s case even more peculiar. Three major announcements came out in January, February and March:
• Jan 20,2011 - San West's Online Sales Divisions Growth Exceeds 629% in 2010
• Feb 16, 2011 - San West Announces Record Online Sales & Web Traffic for January 2011;
• March 3, 2011 - San West Announces Major Online Sales Increase for January and February;
Now, all of the above are a natural catalyst for a trading frenzy to begin, yet the volume of traded shares during the sessions following the above announcements was not really exceptional. In fact, the sum of all traded shares after these announcements is nowhere near that from yesterday. This Wednesday, more than 12 million shares were traded, the price jumped to $0.019, and if the trend that formed on Monday continues by the end of the week the stock might even hit an all-time-high in terms of volume.
Now as mentioned there is nothing major that happened this week that could justify this sudden burst. Let alone, even when there is, it is not much of a catalyst for traders to rush for San West stock. On the other hand, it is logical to assume that there might be something coming up soon, that could cause for the stock to jump high and really attract traders. In this aspect, a quarterly report is due next week, though its impact on the market is questionable given the example with the above mentioned announcements about skyrocketing revenues.
On a related subject, the SEC has also had some remarks about the quarterly financial filings of San West for 2009 and last year, regarding some accounting mistakes, which are explained in detail here (http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7685543)
One thing is certain, though. So far the company has not been particularly stable in terms of balance sheets. Nevertheless, more and more traders focus their attention on it, especially after this week`s mystical hype. In terms, it is highly possible that the upcoming weeks would also be ones of vivid trading activity. Whether the positive price trend would remain is another matter entirely.
http://www.hotstocked.com/article/4298/san-west-inc-otc-snwt-with-mystical-boosted.html
SAN WEST INC (SNWT) BUY CONFIRMED!
Daily Commentary 03/24/11
Our system posted a BUY CONFIRMED today. The previous SELL recommendation was issued on 03.08.2011 (16) days ago, when the stock price was 0.0150. Since then SNWT has gained 37.33%.
BUY-IF is confirmed by a white candlestick which has an open equal to the previous close but closing higher. The buying price is the previous close ( 0.0190 ) according to the Rules of Confirmation.
The recent bullish formation leading to the BUY-IF signal is confirmed today. The market seems ready for a new bullish move. Though the market opened lower today, the day’s activity created a white candlestick that closed above the previous close. This is a valid confirmation criterion.
SAN WEST INC (SNWT) BUY CONFIRMED!
Daily Commentary 03/24/11
Our system posted a BUY CONFIRMED today. The previous SELL recommendation was issued on 03.08.2011 (16) days ago, when the stock price was 0.0150. Since then SNWT has gained 37.33% .
BUY-IF is confirmed by a white candlestick which has an open equal to the previous close but closing higher. The buying price is the previous close ( 0.0190 ) according to the Rules of Confirmation.
The recent bullish formation leading to the BUY-IF signal is confirmed today. The market seems ready for a new bullish move. Though the market opened lower today, the day’s activity created a white candlestick that closed above the previous close. This is a valid confirmation criterion.
It seems that San West (SNWT) becomes more popular. 13 IHub user believe in the manangement and invested their hard earned money. And more to come every day because this is a real company with double-digit growth! With some nice acquisitions the last years they have a strong portfolio now: quads, scooters and beach bicycles! Confince yourself by visiting http://www.countyimports.com or http://www.buggynation.com
SNWT: Technical Stock Chart Video dated 03/23/11:
The SNWT chart made a strong move on a major increase in volume yesterday. The share price surged above the 200dma and is settled right against resistance at $0.019 at this point. The chart will be on high priority with technical traders as the indicators are aligned for possible continuation with the next major resistance more than 50 percent off in the distance.
http://www.pennypayday.com/35/section.aspx/118/san-west-snwtob-technical-stock-chart-video
No problem you are welcome! Looking foward to new highs today - would be great to break the resistance level $0.02! Technical break out here! Go SNWT go!
SNWT: Technical Stock Chart Video dated 03/23/11:
http://www.pennypayday.com/35/section.aspx/118/san-west-snwtob-technical-stock-chart-video
The SNWT chart made a strong move on a major increase in volume yesterday. The share price surged above the 200dma and is settled right against resistance at $0.019 at this point. The chart will be on high priority with technical traders as the indicators are aligned for possible continuation with the next major resistance more than 50 percent off in the distance.
Incredible volume without any news or pr yesterday - insiders?! I'm still long here and can't await the 10-K next week. Should give SNWT an other big move. I truely believe that we could see price moving up to $0.05 - 0.08!
Remember one year ago we traded around $0.20!
Good Luck to all!
SteveKing
PS: Everything under $0.03 is a steal here!
SNWT - Up 30% since I first mentioned it here...
With 2nd highest volume day EVER for this company. Get in under 2 cents before lift off. This OTCBB company is reporting earnings next week and they are looking like the BEST ever.
SNWT - vol increased in past week 10x
Last time it had volume increases like this, it moved 150-200%. Also, business is BOOMING. Folks, this was a 25 cent stock just 15 months ago, now trading at .0168 cents. And business is MUCH better now than back then, as well as company fundamentals! Screaming buy IMO. Forget the 2 day pump and dumps!! This is a retirement stock IMO... a true 10 bagger written all over it. DO you own DD and see.
10 days to go!
Till 03/31/11 the 10-K must have been released! So we will see. Everthing indicates that this could be the best ever and I expect 2011 to be the first positive year!
So could run up quickly.
Do you own DD.
SteveKing (Long position!)
Good points on SNWT from a Yahoo poster...
After a recent convo with management I realized that there's a really compelling story unfolding here. Unlike tech stocks and many other key sectors of the marketplace, SNWT actually thrives when gas prices soar. The main reason for this is the company's burgeoning scooter offering.
2008 was a MASSIVE year for the motorized (high economy gas) and electric scooter market and County Imports - SNWT's key e-commerce partner - reportedly logged more than $2M in scooter sales during the summer months when gas prices seemed to rise every day. Moreover, since they are located in Socal, where gas prices are the highest in the nation, they are positioned right in the middle of a consumer market that is plagued the worst by surging fuel prices.
I think that traders have largely overlooked this dynamic, which could be great for future earnings. I'll be posting a piece of my own on this topic and will make sure to share it here. Good day!
They also now apparently offer an electric bicycle..
Pretty interesting idea.. Learn more here: http://countyimports.com/electric_bicycl...
Why is this electric bike a better value than a
1. Regular bicycle?
* because you have the option to use it as a motor scooter with the adjustable speed throttle in case you need extra power, such as going up the hill or your legs are just not the ones they used to be
* because you wish to travel further with more confidence
2. Scooter?
* because you can use it like a regular bicycle for exercising
* because you can pedal it if the batteries go low
* because it's a bicycle and not a scooter, so you can use it where scooters are prohibited
3. Gas powered vehicle?
* because you do not need a license
* because you do not need registration
* because you can use your bike where motor scooters are banned
* because it's quiet and elegant
* because it makes no fumes and we all can breath cleaner air
* because it's a lot cheaper to operate and own
* because it's the future
SNWT - Get in before the cross.
http://stockcharts.com/freecharts/gallery.html?s=snwt
Hovering at 50 dma... golden cross on the horizon. Accum/dist, CMF, RSI all primed and screaming BUY. I alert you NOW before that glorious day. Buy low folks. This is currently .015 cent stock and was once a .20 stock... and the business is booming more than ever now with no end in sight. A 10 bagger no doubt... just needs a little patience.
NEWS: San West Announces Major Online Sales Increase for_January_and_February
SAN DIEGO, CA--(Marketwire - March 3, 2011) - San West Inc. (OTCBB: SNWT), an emerging leader in the off-road vehicle (ORV) industry, today announced that preliminary unaudited sales for its burgeoning e-commerce business increased by 40% during the first two months of 2011.
Preliminary unaudited online sales for January and February of 2011 reached approximately $242,000 or 135 units versus $168,000 and 103 units during the corresponding period of 2011. This represents overall sales growth of approximately 44% and unit sales growth of 32%. Moreover, the average per-unit sale for the period reached $1,795, representing a 10% increase over $1,633 during the first two months of 2010.
"2011 is shaping up to be a record year for San West, Inc., especially our fledgling online segment. Unaudited Internet sales logged thus far this year represent a very positive indicator of what's to come and I believe that the first quarter and more importantly this calendar year could likely end up being the best for our company and its leading value-added partner, www.CountyImports.com," commented San West, Inc. CEO Frank Drechsler.
Mr. Drechsler concluded: "Over the past 12 months, we've undertaken a massive effort to optimize our e-commerce business and I'm proud to state that these efforts continue to bear fruit as sales surge and online traffic remains at very favorable levels. I look forward to discussing future successes with the public as new developments transpire."
San West Inc. Newsletter Issue #6
Dear Shareholder,
My sincere apologies for getting this newsletter out so late into the month. The tardiness is due to a holdup on good news we've been awaiting to release, but it'll just have to wait for the right timing to be in place and not rushed.
We've Been BUSY!
Coming off a solid Holiday Season, 2011 is off to a great start!
In the last newsletter I mentioned that our Online division, www.countyimports.com has seen record sales in 2010. Well in actuality, it's even better then that and we neared $2,300,000 for the 2010 fiscal year! That's almost a 7-Fold increase over our 2009 online sales which were about $325,000.
What's even better, is that it appears our current online sales for this year are already outpacing last year by a very conservative estimate of 35%!! County Imports anticipates at least a 14% growth during this year through the release of a variety of new products currently being introduced daily to the over 25,000 subscribers! Global page views have escalated by 120% in the past months and natural web traffic has increased by 30% due to special focus on search engine categorization and keyword management. Our ranking is constantly improving, and our visitors are spending not just more time on the websites, but are spending more money as well! Average browsing is lasting 76% longer and purchase tickets have grown to $1500 on the average! It is for these reasons, amongst other indicators, that We anticipate this year is to be our most prosperous one yet!
After launching last years strategic e-commerce initiatives, we made some very bold predictions, all of which we not only met, but in most cases have vastly exceeded!
Now if that's not enough to put a smile on a shareholder's face, then consider this as well; OUR San Diego Showroom Buggy World is also booming! Our Sales staff is constantly busy, the phone never stops ringing, the service bay's are never empty, and we only expect this trend to continue onwards and upward as new parts, products and vehicles leave our showroom as fast as they arrive!
This is why we're elated with how this year has started off, and looking forward to releasing our Annual 2010 report and official guidance for this year as soon as they have been properly auditing and finalized.
WE SELL SCOOTERS!!!!
Last month I mentioned that Gas prices are on the rise and how that will drive scooter sales. At that time, the Middle East was not going through a metamorphosis, and external factors were not driving the oil prices as they are today. It is now clear that $5 per gallon of gasoline will be realized this summer throughout the USA.
Additionally, Scooters are inexpensive to purchase, clean to operate, simple to store, and virtually maintenance free! The majority of the scooter market in the USA are Collage Students, but that's now expanding to more and more urban residents. Scooters are GREEN and ecologically friendly. They are good on the environment and the pocket book. There is NO DOUBT in my mind that scooter sales will outperform compact hybrids in the coming years for inner-city residents and the youth of America as a means of point to point transportation.
San West is in the best possible position to capitalize on 'The Great Scooter Craze' that will take this county by storm. We have developed strategic and exclusive alliances with vendors that will allow us to cease the moment and capitalize of the forthcoming trend. Just this past weekend alone we have sold 32 Scooters to give you and idea of how things are going!
Looking back from next year, it'll be clearly obvious that this was the right thing to be a part of right now. So look forward to that proverbial pat on the back, and rest assured that you are a shareholder in a company that will do very well in the years to come.
eNewsletter Update
Again, My apologies for getting the good word out a little later then I anticipated. I intend to be more regular with the e-newsletter and having it out in the 3rd week of each month, and if news isn't ready, then we'll save it for next one.
Im the meantime, just know that your company is doing good and growing bigger and better every day. Thanks for all your support and understanding and especially for being a part of San West!
Sincerely,
Vlad Cood
Director of Communications, San West Inc.
Vlad@SanWestInc.Com
Close Above 50-day EMA : BB (1-10 of 10) sorted by Volume in descending order
Symbol Last Change %Change High Low Volume Vol %Change Year Low Year High %Off High
SLGLF 0.004 0.000 5.71% 0.004 0.003 3,389,750 59.60% 0.002 0.009 56.47 Trade
SNWT 0.017 0.002 11.11% 0.017 0.015 365,615 -47.27% 0.007 0.210 91.90 Trade
SKRRF 0.165 0.005 3.13% 0.185 0.160 108,300 58.29% 0.050 2.99 94.48 Trade
CALVF 0.134 0.001 0.75% 0.138 0.120 63,200 -91.13% 0.043 0.370 63.78 Trade
CSGI 0.002 0.001 150.00% 0.002 0.002 31,587 39.05% 0.000 0.004 66.67 Trade
DCHAF 0.417 0.025 6.25% 0.417 0.397 30,000 -65.82% 0.303 2.00 79.18 Trade
AOIFF 2.09 0.25 13.59% 2.10 1.90 18,920 108.78% 0.807 2.23 6.33 Trade
DPRK 0.007 0.005 250.00% 0.007 0.007 5,000 -94.21% 0.000 1.13 99.38 Trade
CTEK 4.90 0.20 4.26% 5.00 4.53 3,463 -62.79% 0.000 9.00 45.55 Trade
AMST 0.040 0.005 14.29% 0.040 0.036 2,379 -98.64% 0.020 0.120 66.67 Trade
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60151048
Buggy World Garage Sale Feb. 26! Everything in stock is 20%-80% off! Liquidating old inventory!
BUGGY WORLD AND RND MOTORSPORTS IS HAVING A GARAGE SALE FEBRUARY 26, 2011 FROM 10:00-3:30!
EVERYTHING IN OUR INVENTORY IS 20%-80% OFF!
JIMANOS PIZZA, AND A LIVE DJ!
PLUS, HUGE SAVINGS ON ALL OTHER SALES, SERVICE, PARTS AND ACCESSORIES!
JOYNER, BMS, MOTOBRAVO, VOLKSWAGEN, AND SUBARU OFF-ROAD VEHICLES! WE ALSO HAVE ATV'S, UTV'S, MOTORCYCLES AND SCOOTERS! RACING FUEL, TRIBAL WHIPS, BILLET ALUMINUM ACCESSORIES, JOYNER PARTS, TIRES, WHEELS, ETC!
ALSO, WE ARE AN AUTHORIZED DEALER FOR PARTS UNLIMITED, JMC, MTA, LATEST RAGE, TOTAL CHAOS, AND SOUTHERN!
AGAIN,
BUGGY WORLD AND RND MOTORSPORTS GARAGE SALE FEBRUARY 26, 2011 FROM 10:00-3:30!
MISSION GORGE ROAD at EDGEMOOR, 92071
http://sandiego.sandiego6.com/YardSale/buggy-world-garage-sale-feb-26-everything-in-stock-is-20-80-off/7528269
Still missing SNWT's monthly Newsletter #6 - did anybody receive it or do we have to wait an other week?
Details about the buy back program:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59180656
SNWT News: San West Announces Record Online Sales_&_Web_Traffic_for_January_2011
SAN DIEGO, CA--(Marketwire - February 16, 2011) - San West Inc. (OTCBB: SNWT) an emerging leader in the off-road vehicle (ORV) industry, today announced that both sales and natural web traffic for e-commerce partner website www.CountyImports.com reached record levels during January of 2011.
On a year-over-year basis, preliminary unaudited online sales increased approximately 20% in January while natural web traffic improved by more than 30%. Both business metrics experienced the most rapid growth in corporate history during the month and management expects the trend towards heightened operational performance to continue throughout the first quarter.
"These achievements are a direct result of the herculean keyword marketing overhaul campaign and website development project launched by the company nearly one year ago, which have established San West and County Imports as a clear cut leader in organic web traffic leader within the ORV marketplace," commented San West, Inc. CEO Frank Drechsler. "In addition to these major developments, I'm also proud to note that according to web analytic website www.Alexa.com, global page-views for CountyImports.com have risen 120% over the past 30 days while our overall traffic ranking has moved up 141,743 spots and the average website visitor is spending an impressive 76% longer on the website.
"In the third week of January alone, natural web traffic rose by 45%. In addition, overall online traffic for the month of February is on pace to exceed that of February and March 2010, respectively. This is important because it was during this period last year that we launched the above mentioned strategic initiatives and subsequently announced major improvements to our e-commerce business." Mr. Drechsler concluded: "At this point, the first quarter of 2011 is shaping up to be the best ever for our online business and I look forward to updating the public on our ongoing success as developments transpire."
I believe 2011 could become the first positive year in the history of San West (SNWT)!
Still missing the Newsletter - so let's see if we get additional information.
NEWS: San West Announces Record Online Sales_&_Web_Traffic_for_January_2011
SAN DIEGO, CA--(Marketwire - February 16, 2011) - San West Inc. (OTCBB: SNWT) an emerging leader in the off-road vehicle (ORV) industry, today announced that both sales and natural web traffic for e-commerce partner website www.CountyImports.com reached record levels during January of 2011.
On a year-over-year basis, preliminary unaudited online sales increased approximately 20% in January while natural web traffic improved by more than 30%. Both business metrics experienced the most rapid growth in corporate history during the month and management expects the trend towards heightened operational performance to continue throughout the first quarter.
"These achievements are a direct result of the herculean keyword marketing overhaul campaign and website development project launched by the company nearly one year ago, which have established San West and County Imports as a clear cut leader in organic web traffic leader within the ORV marketplace," commented San West, Inc. CEO Frank Drechsler. "In addition to these major developments, I'm also proud to note that according to web analytic website www.Alexa.com, global page-views for CountyImports.com have risen 120% over the past 30 days while our overall traffic ranking has moved up 141,743 spots and the average website visitor is spending an impressive 76% longer on the website.
"In the third week of January alone, natural web traffic rose by 45%. In addition, overall online traffic for the month of February is on pace to exceed that of February and March 2010, respectively. This is important because it was during this period last year that we launched the above mentioned strategic initiatives and subsequently announced major improvements to our e-commerce business." Mr. Drechsler concluded: "At this point, the first quarter of 2011 is shaping up to be the best ever for our online business and I look forward to updating the public on our ongoing success as developments transpire."
Today SNWT Newsletter #6 will be released!
SNWT - Everything is in place...
Growing revs, growing online business and market share capture. The window is closing to get in near lows BEFORE the climb. This is NOT a pump and dump company. Don't take my word for it... Do DD for yourself and see.
Long and strong till $0.10!
The 10-Q is due 35 days (it used to be 45 days) after each of the first three fiscal quarters. There is no filing after the fourth quarter because that is when the 10-K is filed.
The 10-K must be filed within 60 days (it used to be 90 days) after the end of the fiscal year.
Source:
http://www.investopedia.com/terms/1/10q.asp
http://www.investopedia.com/terms/1/10-k.asp
So I think we have to wait till March! ;-(
GLTA
SteveKing
SNWT Chart Analysis 02/09/11:
http://stockcharts.com/freecharts/gallery.html?s=snwt
0.018 seems to be a major resistance!
Nice volume here today! Any news?
SNWT - get in BEFORE the crowd...
Accum/Dist approaching all time high, while the PPS scoots sideways near all time lows. Accumulation time. Chart is set. Some really good news will launch this thing into orbit IMO. Look into this company, folks! They are currently doing a share buy back with a 15% dividend in 6 months to participating commons holders. You don't do that IMO as a company unless you know that you will be getting a lot more back in market value. GLTA!
San West's (SNWT) Chart looks really ready to take off.
If I had more capital I would still accumulate at these levels.
Thanks for your support here. Go SNWT Go!
Do you know when they have to put out the Q4 results?
GLTA
SteveKing
San West (SNWT): Q4 was better then expected and we are preparing the numbers for release very shortly with our annual report.
I’m very excited about this year. I truly believe 2011 will be a breakthrough year for SNWT and we will show profitability that we can invest into more investor and public relations to expand awareness of our company and grow the price. Things are looking great!
Thanks,
Vlad
Director of Communications
San West Inc.
Long and hold here till $0.20!
San West (SNWT): Q4 was better then expected and we are preparing the numbers for release very shortly with our annual report.
I’m very excited about this year. I truly believe 2011 will be a breakthrough year for SNWT and we will show profitability that we can invest into more investor and public relations to expand awareness of our company and grow the price. Things are looking great!
Thanks,
Vlad
Director of Communications
San West Inc.
Long and hold here till $0.20!
Can't find any news except of mine! Seems that someone smells a rat here. Go SNWT go!
Long and hold here till $0.20!
San West (SNWT): Q4 was better then expected and we are preparing the numbers for release very shortly with our annual report.
I’m very excited about this year. I truly believe 2011 will be a breakthrough year for SNWT and we will show profitability that we can invest into more investor and public relations to expand awareness of our company and grow the price. Things are looking great!
Thanks,
Vlad
Director of Communications
San West Inc.
San West (SNWT): Q4 was better then expected and we are preparing the numbers for release very shortly with our annual report.
I’m very excited about this year. I truly believe 2011 will be a breakthrough year for SNWT and we will show profitability that we can invest into more investor and public relations to expand awareness of our company and grow the price. Things are looking great!
Thanks,
Vlad
Director of Communications
San West Inc.
The whole 8-K:
Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
On November 30, 2010, San West, Inc. (the “Company”) received comments from the Securities and Exchange Commission (“SEC”) related to our fiscal year 2009 and related Form 10-K and quarterly Form 10-Q for the three months ended September 30, 2010. The Company issued a response to the SEC on January 10, 2011. On January 28, 2011, the Company received additional comments related to our January 10, 2011 response. As a result of the January 28, 2011 SEC comments and after discussion with the Board of Directors, our auditor L.L. Bradford & Company, LLC (“LL Bradford”) advised us that disclosure should be made to prevent future reliance on our previously issued financial statements as filed with the SEC on Form 10-K for the year ended December 31, 2009 and for the quarterly periods ended June 30, 2010 and September 30, 2010. Our Board of Directors concurred with LL Bradford.
The primary accounting mistakes relate to the following:
1.
Goodwill Related to the Human BioSource (“HBS”) Merger in 2009 . The company accounted for the reverse merger as a purchase by allocating the purchase price to the net assets of HBS which resulted in $2,131,647 of goodwill. However, the Company should have accounted for the merger as a recapitalization due to the nominal assets and operations of HBS. Under recapitalization accounting the equity of the acquiring enterprise (San West) should be presented as the equity of the combined enterprise and the capital stock account of the acquiring enterprise (San West) is adjusted to reflect the par value of the outstanding stock of the legal acquirer (HBS) after giving effect to the number of shares issued in the business combination. Shares retained by the legal acquirer (HBS) are reflected as an issuance as of the reverse merger date (June 5, 2009) for the historical amount of the net assets of the acquired entity. During 2009, the Company impaired the full amount of goodwill resulting in an increase to our net loss of $2,131,647. Adjusting this transaction as stated above will result in an approximate decrease to our net loss of $2,131,647.
2.
4,087,270 Cancelled Shares . On June 22, 2010, 4,087,270 shares of common stock originally issued as a result of our merger with HBS were returned to the company and canceled. As a result, the Company recorded other income equal to the amount originally expensed as a result of the initial issuance, or $122,618. Pursuant to ASC 505-30-30-7, the cost of treasury shares shall be reflected in capital. Since the stock has no par value and the cancellation did not require any cash outlays by the Company, no value should have been assigned to these shares and the cancellation should only affect the calculation of weighted average shares outstanding used in the calculation of earnings per share on our statement of operations. Thus, we inadvertently recorded other income of $122,618 when we should not have recorded any monetary financial statement impact for this cancellation. Our adjustment of this item will result in an increase to our net loss by $122,618.
3.
2,093,145 Issued Shares . On June 25, 2010, Dutchess received 2,093,145 shares in conjunction with the Investment Agreement (also known as the Equity line of Credit) as described in our S-1, page 3, filed on April 28, 2010 as follows:
“In addition to the shares to be issued pursuant to the Equity Line of Credit, we have agreed to issue to Dutchess $400,000 worth of our common stock, or 2,093,145 shares as a Commitment Fee. The amount of shares issued was determined by dividing the amount of the Commitment Fee by the lowest closing Best Bid price of our common stock for the 10 Trading Days immediately preceding December 18, 2009, the date of the Investment Agreement. Such shares are covered by the Registration Rights Agreement executed in connection with the Investment Agreement, and are included in the registration statement with respect to this prospectus.”
The 2,093,145 share commitment fee was issued as an inducement to enter the Equity Line of Credit and is customary for this type of transaction. The terms of the Commitment Fee from the Investment Agreement dated December 18, 2009 is as follows:
(R) COMMITMENT FEE. The Issuer agrees to issue to the Investor four hundred thousand dollars ($400,000) worth of common stock as a Commitment Fee. The Commitment Fee shall be paid upon execution of this Agreement. The amount of shares issued will be determined by dividing the amount of the Commitment Fee by the lowest closing Best Bid price of the Issuer's Common Stock for the ten Trading Days immediately preceding the date of this Agreement. Such Common Stock shall be subject to the same Registration Rights as the Commitment Amount, excluding the current registration statement on file, file number 333-156706.
The ability of the Company to put shares to the company and receive financing was contingent on the S-1 being declared effective. Without an effective S-1, the Company would not have been able to put any Put Shares to Dutchess. Without an effective S-1, the Company would not have issued the Commitment Fee shares. The S-1 was declared effective on June 21, 2010. The shares were issued on June 25, 2010. It appears that we may have overstated stock compensation expense related to this issuance as follows:
Commitment amount (12/18/09)
$400,000
Commitment shares due (12/18/09)
2,093,145
Price per share
$0.191
Commitment amount (12/18/09)
$400,000
Commitment shares issued (6/25/09)
2,093,145
Commitment shares issuable based on commitment amount
11,111,111 ($400,000 / $0.036)
Price per share (S-1 EFFECT date 6/21/10)
$0.036
Commitment share value on effective date
$75,353 (2,093,145 x $0.036)
Overstated stock compensation expense
$324,647 ($400,000 - $75,353)
Dutchess does not intend to seek 9,017,966 (11,111,111 – 2,093,145) additional shares to reach the commitment amount of $400,000. As a result, this adjustment to our second quarter 2010 will result in a decrease to our net loss by approximately $324,647.
4.
Unrecorded Beneficial Conversion Feature . Upon review of our financial statements for the three months ended September 30, 2010, we discovered unrecorded expense associated with a beneficial conversion feature contained in one of our outstanding notes that totals $64,937 and is the result of two debt modifications to the Seacoast debt described under item #1 to NOTE H – NOTES PAYABLE on our Form 10-Q for the three and nine months ended September, 30, 2010 filed with the SEC on November 12, 2010. As a result, this adjustment to our third quarter 2010 will result in an increase to our net loss by approximately $64,937.
The net effect on our net income and statement of operations for the quarter ended June 30, 2010 is a credit or decrease to our net loss of $202,029 (Net of items No. 2 and No. 3 above). Net income for the three and six months ended June 30, 2010 was reported as $426,240 and $1,378,644, respectively, of which the proposed adjustment of $202,029 represents a positive adjustment of 47% and 15%, respectively.
The reported net loss for the nine months ended September 30, 2010 was $1,667,929. A net credit of $137,092 (combining adjustments No 2 through 4 above) represents a positive adjustment of 8% to our results of operations for the nine months ended September 30, 2010.
Since the proposed Q2 and Q3 adjustments above would have a positive impact on the reported statement of operations, and do not effect assets or liabilities, only equity, we do not intend to amend our quarterly Form 10-Q filings for the three and six months ended June 30, 2010 or the three and nine months ended September 30, 2010. We intend to make the above adjustments (Item No 2 – 4 above) in our fourth quarter of 2010 and for the year then ended. We will adjust our 2009 financial statements for Item No. 1 above in our 2010 Form 10-K.
As a result of the foregoing, the board concluded, that the Company’s unaudited interim financial statements for the year ended December 31, 2009 and quarterly periods ended June 30, 2010 and September 30, 2010, as well as its audited financial statements for the, and related Form(s) 10-K and 10-Q should no longer be relied on.
We anticipate filing restated 2009 financial statements and footnotes in conjunction with Form 10-K for our fiscal year ended December 31, 2010 to reflect these adjustments by our filing deadline on March 31, 2011.
The Company’s independent auditors, L.L. Bradford & Company, LLC are still auditing and reviewing the Company’s 2010 annual financial statements. As such, management cannot currently provide any assurance that further analysis will not reveal additional errors which impact the Company’s previously issued financial statements.
Forward-Looking Statements
Forward-looking statements in this 8-K are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the statements regarding potential errors in previously issued financial statements; the nature, magnitude and scope of potential errors and the Company's investigation and analysis of such potential errors. These statements are just predictions reflecting management’s current judgment and involve risks and uncertainties, such that actual results may differ significantly. These risks include, but are not limited to, additional actions resulting from the Company's continuing internal review, as well as the review and audit by the Company's independent auditors of restated financial statements, if any, and actions resulting from discussions with or required by the Securities and Exchange Commission, along with other risks and uncertainties discussed in the Company’s Annual Report on Form 10-K for the fiscal 2009 and the Company’s Quarterly Reports on Form 10-Q for subsequent quarters. The Company disclaims any obligation to update any forward-looking statements.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibit is being filed herewith this Current Report on Form 8-K
16.1 Letter from L.L. Bradford & Company, LLC to the Securities and Exchange Commission dated January 28, 2011.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SAN WEST, INC.
Date: January 31, 2011 By: /s/ Frank Drechsler
Frank Drechsler, CEO
San West Inc. (SNWT): BUY CONFIRMED!
Daily Commentary 01/28/2011
Our system posted a BUY CONFIRMED today. Patience pays off. The market wavered a bit but finally confirmed the recent bullish formation.
If you bought, continue to hold this stock until the confirmation of the next SELL-IF signal. You are on relatively safe grounds as long as the future prices continue to trade above the benchmark price and if an emergency warning is not issued. What to do if you did not buy? Maybe you did not have time to follow the session or you simply delegated the delicate job of confirmation to us. Well, it is a bit late, but not too late. You may still find suitable prices for buying in the following sessions and still profit in case of a sustained bullish move.
Source:
http://www.americanbulls.com/StockPage.asp?CompanyTicker=SNWT&MarketTicker=OTC&Typ=S
Special Offer: 1 Penny Sale!
San West with County Imports breaks new ground and creates a special offer that has no rival! It's called: 1 Penny Sale!
Take a look at it and send this to your friends!
http://countyimports.com/1_penny_sale___special_offers/?xtr=Penny-Sale-Side
Have a nice day.
SteveKing
@rjhstock - answer to your PM!
rjhstock – thanks for heaping praise on me! I’ve been glad that you appreciate my DD-work. Unfortunatly I'm not a premium member so I have to answer public.
Before answering your private message I want you to know that English is not my first language. I live in Austria/Europe (where Arnold Schwarzenegger comes from) and here we speak German! So please excuse my misspell – believe me I tried my best!
Facts about the preferred stock:
• These stocks were for raising money without further dilution for the common shares.
• You are being offered an investment in San West Inc. that yields a 15% return at 6 months time.
• To collateralize this investment, San West will Issue you a convertible Series A Preferred Stock Certificate that is restricted for 6 months from the funding date.
• This investment is structured like a Preferred Stock Offering, with a buy back option by the issuer.
• Within 6 months you’ll likely receive a check from San West for your investment principle plus 15% interest, at which time your convertible Series A Preferred Stock certificates becomes null and void.
• San West may opt to purchase the certificate back from you earlier then 6 months, in such case the 15% interest will be prorated over the period of time that your funds were used by the company.
• This certificate is convertible into freely trading common shares of SNWT.OB and may be deposited with your broker and sold on the open market should San West NOT exercise our option to purchase back your certificate when it matures.
In such an event, the following describes how the conversion process works:
- You have essentially purchased $1 par value per share convertible preferred stock.
- In 6 months you may converts it into $1.15 worth of San West common stock.
- It converts at 85% on the 20 day (approx. 1 calendar month) trailing, lowest, closing bid price.
Unfortunately I did not receive this invitation to get preferred! And it does not really make sense to me. Where is the advantage for San West? This only works with fresh capital and not by converting common shares in preferred!
By the way at the 5:1 split in Autumn 2009 the price of the stock was $1.75 pre-split - $ 0.35 thereafter. So where do you think people will sell them - @$0.10?
So now you have to decide:
Preferred Stock: 15% guaranteed within 6 month or
Common Stock: Participate from the performance of the share price.
My portfolio insists on SNWT shares only. I hold 726.000 shares and my average price is about ~$0.08! …and I’m a shareholder since 2005!
If I had more money I would still average down my price at these levels because I believe that we will see prices between $0.10 -$0.15 in 2011 and $0.25 -$0.40 in 2012.
They really cleaned up the balance and so this year there won’t be any bad surprises anymore. Economy recovers and San West offers a big range of products for motorsports and -cycle enthusiasts. And I recognized that going for a Buggy Trail in California is as normal as skiing in Winter here in Austria! Isn’t it? People spend their money to get the newest Buggy, individualize it and make it a part of them.
Please keep up your positive comments on IHub and help me to embed in the memory of all SNWT shareholders to hold their shares for higher levels than $0.03 or $0.05. Because if nobody sells below $0.10 price we will soon be there. Especially sell “stop loss limits” are just what MM’s are waiting for to collect some cheap shares.
Hope you partly understood my English-gibber!
Good Luck to You!
SteveKing
SNWT.OB Net Income trends to be positive soon!
Dec 31, 2009 (2,713)
Mar 31, 2010 (952)
Jun 30, 2010 (426)
Sep 30, 2010 (289)
Source:
http://finance.yahoo.com/q/is?s=snwt.ob
Will Q4 be the first positive quarter? I think San West will give us a great pleasure in 2011! Long and hold here.
GLTA
SteveKing