Petrone Worldwide Inc (OTCMKTS:PFWI) is a low-priced trading equity that has started to engage some focus among traders and investors as prices get a little traction in bounce mode. We have noticed a very distinct jump in trading volume in recent sessions, which suggests it may be a good time to update our take on PFWI.
Clearly the most important recent catalyst to impact PFWI was its announcement that it recently signed a letter of intent with Bio-Clean International, Inc. to distribute potable bulk water globally due to, reportedly, “the demand from water stressed regions”. As the company notes in its release, “Bulk water supplies are used for both everyday and emergency situations and include applications related to potable and non-potable water delivery systems and subsystems such as transmission and distribution pipelines, ship and aircraft transport, and water tankers/wagons. Adequate water quality must be maintained in the bulk water filling, storage, transportation and distribution system/process so that safe water can be delivered to users.”
Petrone Worldwide Inc (OTCMKTS:PFWI) trumpets itself as a company that imports, exports, and distributes tableware products, decorative hotel guest room amenities, lavatory, bathroom fixtures and furniture, food and beverage service items, and trendy accessories for Asian and European markets.
According to company materials, “Petrone Worldwide, Inc. is a leader in the hospitality industry with global operations capabilities. Now providing third party logistics for overseas manufacturing companies attempting to sell their goods in North America, PFWI sells and markets products under its own proprietary name and acts as distributor for a wide variety of companies to the hospitality trade.”
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As noted above, PFWI shares have begun to pick up off recent lows on a clear and steady rise in volume. We don’t see any clear and indisputable evidence of promotional activity on the stock of late, so it may represent something to keep an eye on.
PFWI, according to the release, will globally supply potable water through its logistics platform under exclusivity of negotiated long-term ‘Water Purchase Agreements’ from two governmental renewable fresh water sources.
“We’re taking Bulk Water, Packaged & Bottled Water solutions to the 1.1 Billion people that lack clean, potable water” said Victor Petrone, chief executive officer. “Well-researched and strategic new distribution channels are the core basis of our strategy to respond to the demand from water stressed regions in need.” We’re using all the resources at our disposal, including our strategic partnership to create momentum and meet market demand head on.”
The chart shows 72% added to share values of the stock over the past week of action, but this action is running counter to the larger trend in the name. Market participants may want to pay attention to this stock. PFWI is a stock whose past is littered with sudden rips. In addition, the company has seen interest climb, with an increase in recent trading volume of exceeding 1000% above its longer run average levels.
This is particularly important with a float in play that’s limited — fewer than 11M shares. One is wise to respect the dynamic this may create — a jump in average daily transaction volume in a stock with a restricted float can unleash fireworks as supply is squeezed.
Now commanding a market cap of $285,790k PFWI has virtually no cash on the books, which is balanced by about $305K in total current liabilities. One should also note that debt has been growing over recent quarters. PFWI is pulling in trailing 12-month revenues of $567K. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 130.6%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $PFWI stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $PFWI, either long or short, and we have not been compensated for this article.