SavWatt USA Inc (SAVW)

[~Angel~]

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=65676147

SAVW - that is some sick dilution

So all the while that this has been one of the biggest promoted/pumped penny stocks over the last several weeks the company was just drawing in new investors so they could dump on them by the tens of millions weekly:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8063070


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This should be no surprise since

#1) SAVW had over $2 million dollars in convertible debt notes, interest, and past due expenses ($1,856,849 of which was convertible debt notes and interest owed on those convertible debt notes) at the end of the first quarter of 2011:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7949793


#2) SAVW had already shown that they love to pay off debts with super discounted shares including in January 2011 when the CEO through his entity, Sutton Global, converted $250,000 of debt owed to himself into 5,000,000 shares of Preferred Series A stock.

Each Preferred Series A share converts into 500 common shares at any time that Isaac Sutton wants to convert them.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7857400

That means for $250,000 worth of debt Isaac Sutton got 2,500,000,000 common shares of stock. That's a debt conversion ratio of $.0001/share. Talk about super discounted shares.

At the time of the conversion SAVW was trading at around $.01/share. That means that Sutton paid himself back $25,000,000 for that $250,000 loan.

Those preferred shares can be converted any time the CEO wants, but I would imagine he'll wait until after a reverse split some time in the future.


#3) SAVW had already been diluting like crazy during the first 3 months of 2011 (129,002,040 shares of common stock issued in exchange for debt conversions from January 1, 2011 - March 31, 2011).


#4) Isaac Sutton already had a history of destroying a company share price through dilution as the CEO of GOIG



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Looking at the 8K filed today and the conversion ratio of each debt note conversion done compared to the trading price of the stock on the day of the conversion shows that all the shares were issued at a discount of 37% - 85% below what regular investors had to pay:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8063070


04/01/2011 5,454,500 $10,000 Debt conversions 1
04/03/2011 9,697,000 $16,000 Debt conversions 2
04/03/2011 6,103,900 $14,100 Debt conversions 4
04/03/2011 4,242,400 $ 7,000 Debt conversions 11
04/06/2011 12,000,000 $30,000 Debt conversions 8
04/11/2011 20,000,000 $20,000 Debt conversions 6
04/14/2011 7,407,400 $10,000 Debt conversions 3
04/14/2011 20,000,000 $30,000 Debt conversions 8
04/14/2011 3,846,100 $ 5,000 Debt conversions 11
04/25/2011 20,000,000 $30,000 Debt conversions 8
04/26/2011 3,241,800 $ 5,900 Debt conversions 7
04/27/2011 931,700 $ 1,500 Debt conversions 7
04/27/2011 5,217,400 $ 6,000 Debt conversions 11
04/28/2011 3,246,700 $ 5,000 Debt conversions 4
04/29/2011 2,380,900 $ 3,500 Debt conversions 4
05/02/2011 1,020,400 $ 1,500 Debt conversions 4
05/02/2011 680,300 $ 1,000 Debt conversions 7
05/02/2011 2,380,900 $ 2,500 Debt conversions 11
05/03/2011 9,385,000 $10,000 Debt conversions 1
05/03/2011 2,184,900 $ 2,400 Debt conversions 7
05/03/2011 2,352,900 $ 2,000 Debt conversions 11
05/04/2011 982,100 $ 1,100 Debt conversions 4
05/04/2011 446,400 $ 500 Debt conversions 7
05/04/2011 2,500,000 $ 2,000 Debt conversions 11
05/05/2011 2,515,000 $ 2,500 Debt conversions 7
05/05/2011 24,572,400 $25,000 Debt conversions 10
05/06/2011 25,000,000 $25,000 Debt conversions 8
05/08/2011 31,000,000 $23,250 Debt conversions 6
05/10/2011 19,000,000 $15,200 Debt conversions 2
05/11/2011 25,974,000 $25,000 Debt conversions 10
05/11/2011 5,000,000 $10,000 Debt conversions
05/12/2011 2,232,100 $ 2,500 Debt conversions 4
05/13/2011 5,000,000 $ 5,000 Services rendered 9
05/13/2011 3,125,000 $ 2,500 Debt conversions 11
05/16/2011 18,500,000 $20,720 Debt conversions 4
05/16/2011 16,071,400 $18,000 Debt conversions 7
05/16/2011 20,833,300 $25,000 Debt conversions 8
05/18/2011 13,333,300 $20,000 Debt conversions 3
05/18/2011 19,000,000 $16,150 Debt conversions 5
05/19/2011 2,000,000 $ 2,500 Debt conversions 11
05/20/2011 20,833,300 $25,000 Debt conversions 8
05/23/2011 25,974,000 $25,000 Debt conversions 10
05/24/2011 20,833,300 $35,000 Debt conversions 4
05/24/2011 21,052,600 $20,000 Debt conversions 6
05/24/2011 25,974,000 $25,000 Debt conversions 10
05/25/2011 34,400,000 $43,000 Debt conversions 2
05/25/2011 7,554,600 $22,664 Services rendered 9
05/26/2011 15,000,000 $18,000 Debt conversions 11
05/27/2011 20,833,300 $25,000 Debt conversions 8
05/27/2011 2,597,400 $ 7,792 Services rendered 9
05/27/2011 5,769,200 $ 7,500 Debt conversions 11
06/01/2011 5,238,100 $ 5,500 Debt conversions 11
06/02/2011 8,507,100 $ 8,932 Debt conversions 11
06/03/2011 2,083,300 $ 5,208 Services rendered
06/03/2011 2,083,300 $ 5,208 Services rendered
06/13/2011 7,894,800 $10,500 Debt conversions 7
06/14/2011 6,391,000 $ 8,500 Debt conversions 7
06/15/2011 25,570,000 $25,000 Debt conversions 10
06/15/2011 4,210,500 $ 4,000 Debt conversions 11
06/16/2011 37,000,000 $37,000 Debt conversions 2
06/16/2011 2,597,400 $ 4,935 Services rendered 9
06/16/2011 2,222,200 $ 2,000 Debt conversions 11
06/16/2011 1,500,000 $ 2,850 Services rendered
06/20/2011 26,315,800 $25,000 Debt conversions 6
06/20/2011 11,858,100 $14,500 Debt conversions 7
06/22/2011 4,844,400 $ 1,568 Debt conversions 11
06/23/2011 1,904,800 $ 2,000 Debt conversions 11
06/24/2011 6,044,000 $ 5,500 Debt conversions 11
06/27/2011 14,285,700 $10,000 Debt conversions 7
06/27/2011 22,857,200 $16,000 Debt conversions 11
06/28/2011 2,917,200 $ 2,042 Debt conversions 11
06/29/2011 14,285,700 $10,000 Debt conversions 7
06/29/2011 41,322,400 $25,000 Debt conversions 10
06/30/2011 17,700,000 $ 8,850 Debt conversions 5
06/30/2011 5,145,800 $ 3,600 Debt conversions 7
06/30/2011 2,457,000 $ 4,914 Services rendered 9
06/30/2011 37,248,500 $24,258 Debt conversions 11
07/05/2011 41,322,300 $25,000 Debt conversions 10
07/06/2011 4,511,300 $ 6,000 Debt conversions 4
07/06/2011 5,991,200 $ 7,580 Debt conversions 4
07/06/2011 127,500 $ 250 Debt conversions 7
07/08/2011 52,000,000 $26,000 Debt conversions 2
07/08/2011 50,000,000 $25,000 Debt conversions 6
07/08/2011 33,672,500 $25,000 Debt conversions 10
07/11/2011 15,306,200 $30,000 Debt conversions 7
07/19/2011 10,073,300 $27,500 Debt conversions 7

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The two largest debt conversions were also at the lowest conversion ratio

7/08/2011 52,000,000 shares issued for $26,000 worth of debt at a conversion ratio of $.0005/share - the stock closed at $.0034/share the previous day for a discount of 85%)

7/08/2011 50,000,000 shares issued for $25,000 worth of debt at a conversion ratio of $.0005/share - the stock closed at $.0034/share the previous day for a discount of 85%)

All total 178,672,500 shares were issued towards debts on July 8, 2011

During the next two trading days following the issuance of those 178,672,500 shares SAVW had its highest trading volume ever:

7/11/2011 237,382,727 traded
7/12/2011 324,530,546 traded

On 7/11/2011 a fresh round of paid promotions were done on the stock to help support the volume


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All total SAVW issued 1,047,961,300 shares into the float between 4/1/2011 - 7/19/2011 towards the conversion of $1,095,920 of debt and $58,571 in service (an average conversion price of $.0011/share) all at discounts between 37% - 85% below market price amounting to some huge profits for those debt holders. During that same period 9 SAVW press releases were published.


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The point of all this is that despite the horrible numbers in the last 10Q

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7949793

Only $27,163 in cash
Only $3,784 in revenues
$171,986 in accrued expenses
$1,856,849 in loans and interest owed
Net losses of $1,323,297 for the three months ended March 31, 2011
Accumulated deficit amounting to $40,526,561


Investors still bought the 9 press release published during the 3 months of constant dilution listed in the 8K


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Now here is the scariest part despite converting $1,095,920 worth of debt between 4/1/2011 - 7/19/2011, SAVW still has $760,929 worth of debt and interest owed to go and that's not even counting the addition interest accumulated during that 3 1/2 month period. Some of those debt Notes carry extremely high interest rates of 18%.

At the average conversion ratio used of $.0011/share used during the 3 1/2 month period listed in the 8K that would be another 692,000,000 shares and that's just for loans and interest not expenses owed and services.

Fact is that between the accumulating interest owed, new debt notes being signed, and a falling share price it will take much much more than 692,000,000 shares to pay off all the debts and other expenses. Plus who knows how many shares will also be issued towards services and expenses owed.


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The last reported outstanding share count was 669,761,367 on May 19, 2011.

Based on just the shares issued towards debt between 5/19/2011 - 7/17/2011 from the 8K the outstanding share count has now grown to at least 1,386,571,667 as of July 17, 2011.

I predict an authorized share increase from 2,000,000,000 to 4,000,000,000 by early September and a trading price in the triple zeroes by then too.

Many SAVW investors may feel taken advantage as they should.

The next few days could get extremely ugly for the SAVW trading price.



Should I repeat this post again and again ?