Boreal Water Collection Inc. (fka BRWC)

[rarefind]

On Friday the stock of Boreal Water Collection, Inc. (OTCMKTS:BRWC, BRWC message board) traded in unusually high volume. The share price struggled to leave the bog of triple zeroes and momentarily touched $0.001 intra-day but the ticker ultimately closed at $0.0009.

BRWC is a bottled water company that offers personalized finishes and labels to its products. The company's website offers a surprisingly wide array of different types of water, to the point where it would seem BRWC sells anything but holy water. The company made a mid-May push into double zeroes but remained there for only a handful of sessions before deflating back to triples.

The volume accumulation and price pop around the middle of May were triggered by the release of the company's quarterly report. In the session following the filing BRWC doubled in price but the surge was not to last. Here is what the company reported in its last 10-Q:

$48 thousand in cash
$2.1 million in current liabilities
$450 thousand in Q1 sales
$229 thousand in Q1 net loss

First quarter revenues are actually down 6% year-over-year and the company is still generating six-digit losses on a quarterly basis, so it's a little difficult to imagine what got investors so excited about the report.

There's also the matter with BRWC's share structure. The quarterly report lists 322 million shares outstanding, with 600 million authorized and 58 million in the free trading public float. However, an 8-K reveals that the company upped its AUTHORIZED shares from 1.5 billion to 5 billion on March 27. Additionally, with 491 million shares traded within a single session on May 19, it doesn't seem very likely that BRWC still has a float of 58 million and 322 million total outstanding shares.