These Promoted Stocks Have Revolutionary Products… And Now For a Reality Check (AMWI, ATTH & SENY)
A closer look at recently promoted stocks Amwest Imaging (AMWI), Atlas Therapeutics (ATTH) and Sauer Energy (SENY).
By John Udovich
Published: December 2, 2011 7:15:24 AM PST
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Rating
StockHQ:
SENY
$0.61-$0.01-0.81%
ATTH
$0.13-$0.01-3.85%
AMWI
$0.24+$0.01+6.56%
Recently promoted stocks Amwest Imaging (OTC: AMWI), Atlas Therapeutics (OTC: ATTH) and Sauer Energy (OTC: SENY) are three small cap OTC stocks that can all claim they are sitting on a gold mine thanks to having revolutionary products. However, the harsh spotlight of reality may or may not always blind investors and traders alike. Hence, here is a closer look at Amwest Imaging (AMWI), Atlas Therapeutics (ATTH) and Sauer Energy (SENY) to help you decide whether these three stocks and their products are worth their weight in promotions:
Amwest Imaging (OTC: AMWI)
Since mid November, Amwest Imaging has been the subject of a flurry of press releases and promotions. Specifically, Amwest Imaging has recently acquired Zipclik Technologies, a 256 AES encryption software for Skype, AIM, Yahoo IM, Meebo and other Voice Over Internet Protocol (VOIP) Software. Amwest Imaging charges a fee of $99.00 to download and install the Zipclik software on to a computer and its CEO has pointed out in one of their press releases that if just 15% of Skype's more that 600 million users were to use the software, the company would book more than $5.94 billion in bookable revenue (Just like the British cotton merchants a century ago who hoped to make a fortune if the Chinese would add an extra button or inch of material to their tunics…). Amwest Imaging also plans to release ZipClik for BlackBerry to serve an estimated 32 million BlackBerry users so that they to can enjoy secure and encrypted phone calls, Instant messaging, data transfer and VoIP communication (Again, for just $99) for another $3.2 billion in potential revenue. However, investors who are intrigued by these claims better take the time to dig around on EDGAR to uncover Amwest Imaging’s financials – which reveal that up until May 31, 2011, the company had no capital resources of any kind. On Thursday, Amwest Imaging fell 3.49% to $0.221 (AMWI has a 52 week trading range of $0.03 to $2.05 a share) for a market cap of $113.5 million.
Atlas Therapeutics (OTC: ATTH)
Atlas Therapeutics is focused on the formulation, acquisition and distribution of nutritional, physical performance enhancement and wellness products. Specifically, Atlas Therapeutics is a distributor and marketer of the world's only clinically validated myostatin inhibitor, MYO-T12(R). Since, I am not a body builder, I am not sure what that is (apparently, it’s a natural way to improve strength and shed weight) but the company noted in a corporate update earlier this week that ads for MYO-T12 featuring Wayne Gretzky have garnered both industry and consumer attention plus the product is available from well known retailers like Amazon. However and according to a filing this week, Atlas Therapeutics has just raised some cash for promotions along with other activities by completing a private placement of $400,000 worth of unsecured convertible promissory notes. The filing also noted that as additional consideration for the Notes, Atlas Therapeutics issued 400,000 shares of stock to the purchasers. Either way and on Thursday, Atlas Therapeutics sank 23.53% to $0.130 (ATTH has a 52 week trading range of $0.11 to $2.00 a share) for a market cap of $8.58 million. Investors might also want to dig up Atlas Therapeutics’ full financials as it only reported $56k in revenue last quarter and no revenue before that.
Sauer Energy (OTC: SENY)
Sauer Energy is the developer of home and enterprise scale vertical axis wind turbine (VAWT) systems which it will manufacture and commercialize in early 2012. Sauer Energy has periodically been releasing press releases since August and in mid November it gave a corporate update – noting that it anticipates revenues beginning in the first quarter of 2012. Sauer Energy could use some revenue because as of May 31, 2011, it reported having just $247k in cash on hand to cover just $68k in current liabilities. Regardless of whether or not Sauer Energy has a revolutionary renewable energy product, I am not sure how the company intends to finance its manufacture and distribution – which probably means I need to wait for the next press release or paid promotion. On Thursday, Sauer Energy rose 8.85% to $0.615 (MAG has a 52 week trading range of $0.35 to $1.30 a share) for a market cap of $43 million.
The Bottom Line. Regardless of whether or not Amwest Imaging (AMWI), Atlas Therapeutics (ATTH) and Sauer Energy (SENY) have revolutionary new products, their ability to finance the development and commercialization of such products should be at the center of any investor reality check.
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