WorldWater & Power Corp. Signs $1.145 Million Contract to Provide Solar Power for California Embroidery Plant
Worldwater Corp (WWAT) announced that it has signed a $1,145,800 contract to build and install a solar electric power generation system for Quality Embroidery in Los Angeles, California. The photovoltaic (PV) system will provide electricity for the company, and is expected to substantially reduce electrical usage costs for the facility.
With the signing of this contract, on top of its earlier announced 2005 contract backlog of $23 million, the Company issued Revenue Guidance for 2006, projecting Revenue of $25 million to $35 million. [ more ]
I have tracked World Water for a while and I recently received a question about my thoughts on this company. The good about this company is that I like the businesses they are in (both Water and Solar.) They have created a nice niche for themselves in selling solar powered pumps to the agricultural industries. They are also trying to branch out into pure solar installations as well, as referenced in the press release above. Another plus is that they appear to be a fully SEC reporting company. This helps a great deal when your doing due diligence on these small companies.
This company should be considered very risky and is a true penny stock. They have a very negative trend when it comes to profits and the losses have been growing each year. A quick check of the insider transactions shows that there is nothing but selling. This is never a good sign.
The biggest problem I have with this company is that its very popular with many of the penny stock pump-n-dumpers. You will frequently see this name on various spam e-mails touting the stock when it gets down into the 10-20 cent range. It will quickly rise up and then sell off again.
If you are a trader, this maybe one of those times that you can play this stock since it is at the lower end of this cycle.
Like I said, I like the business model but for me personally, I'm staying away from this company until they change their loosing direction.