Small cap green stocks Building Turbines Inc (OTCMKTS: BLDW), Virtual Sourcing, Inc (OTCMKTS: PGCX) and Unseen Solar, Inc (OTCMKTS: PCWT) have been getting some attention lately in various investment newsletters in part because some “green” is being paid out in the form of paid promotions or investor relation activity. Of course, there is nothing wrong with properly disclosed paid promotions, but you do need to remember that small cap stocks (especially those in new “green” industries) already come with risk. With that in mind, here is a quick reality check about these three green small cap stocks and whether you can expect to see some green in the form of profits:
Building Turbines Inc (OTCMKTS: BLDW) Has Secured a $5 Million Line of Credit
Small cap Building Turbines Inc is focused on the design and manufacture of patented rooftop wind turbines as well as vertically integrating them into other renewable energy solutions to complete a total “Green Energy Solution” for any urban environment. Building Turbines Inc’s subsidiary, Green City Planet, is also a premier provider of LED lighting and environmentally sound industrial solutions. On Friday, Building Turbines Inc fell 9.76% to $0.0370 for a market cap of $8.71 million plus BLDW is up 51% over the past year and down 87.2% since June 2011 according to Google Finance.
What’s the Catch With Building Turbines Inc? According to various disclosures, transactions of $2k, $3k, $3.5k, $15k, $7.5k, $15k and $20k have or will occur to mention Building Turbines Inc in various investment newsletters. Along with the steady stream of promotions, Building Turbines Inc has been issuing a steady stream of press releases with the latest one from last Wednesday to announce that Green City Planet has completed its fourth major LED Lighting installation for one of America's “largest and recognizable dining, entertainment, gaming and hospitality companies.” Last Tuesday, Building Turbines Inc announced it had secured a five million dollar line of credit through Sirius Green Solutions, Inc. which will allow for the increase in current sales and distribution of wind turbines, solar and LED lighting. However and according to Google Finance, Building Turbines has reported just $0.14M in revenues last quarter; net losses of $0.01M (most recent reported quarter), $0.10M, $0.47M, $0.81M and $67.59M for the past five quarters; and no cash to cover $0.43M in current liabilities. So maybe investors will want to wait for another quarter or two of financials to see how the line of credit impacts the top and bottom lines.
Virtual Sourcing, Inc (OTCMKTS: PGCX) Says It Will Have Substantial Operating Revenue in the Last Quarter
Small cap Virtual Sourcing is actively pursuing the acquisition of thriving businesses with a five-year or more operating history, year over year sales growth and an increasing net cash flow already in excess of 10% of sales. Target companies include recyclers, manufacturers of recycled products, plastics extrusion companies and suppliers of recycled materials for manufacturing. On Friday, Virtual Sourcing fell 5.88% to $0.160 for a market cap of $950,000 plus PGCX is up 6.7% over the past year and 700% over the past five years according to Google Finance.
What’s the Catch With Virtual Sourcing, Inc? According to various disclosures, transactions of $2.5k, $13k and $50k have or will occur to mention Virtual Sourcing in various investment newsletters. Virtual Sourcing has been busy announcing big acquisitions. Over a week ago, Virtual Sourcing announced its subsidiary Allied Recycling Corp. had signed a letter of intent to purchase the assets of a holding company that includes a concrete products manufacturer with more than 20 years of operations, historical sales exceeding $17 million annually in four of the last five years and discretionary earnings in excess of $3 million in its latest fiscal year ended in April 2013. This press release came after another one in August which announced an “ambitious $15-$20 million acquisition plan” (of paper, plastic and fiberglass recyclers) to speed its growth and profitability that will cause the company to “have substantial operating revenue beginning in the last quarter of 2013 with equivalently significant profits.” However, Virtual Sourcing has reported no revenues; net losses of $69k (most recent reported quarter), $38k, $78k and $19k for the past four quarters; and no cash to cover $465k in current liabilities at the end of last June. So it remains to be seen whether Virtual Sourcing can keep its promise of “substantial operating revenue” in the last quarter.
Unseen Solar, Inc (OTCMKTS: PCWT) Finally Has Some News
Formerly known as Unseen Solar, Inc, small cap Pacific Clean Water Technologies, Inc formed a subsidiary called WWC to primarily target businesses within the Agriculture and Industrial sectors, whose combined use of fresh water is estimated at 92% annually. On Friday, Pacific Clean Water Technologies is up 7.49% to $0.201 for a market cap of $168.30 million but there is not much historical data on the stock.
What’s the Catch With Pacific Clean Water Technologies Inc? According to various disclosures, one promoter or group of promoters expects to “receive $500,000 from a third party for publication of this information.” Last Wednesday, Pacific Clean Water Technologies announced that its WWC subsidiary had introduced a safer and more effective way to generate chlorine dioxide in a plant owned by Bolthouse Farms (which was bought in 2012 by the Campbell Soup Company for $1.55 billion). It was also mentioned that WWC has created products that can “improve the processing of carrots, the cleaning of the plant, minimize wastewater and enhance recycling.” Beyond that press release, there really has not been any other news from the company beyond a few filings. A quick look at Pacific Clean Water Technologies’ financials reveals revenues of $813k (most recent reported quarter), $495k, $2,822k and zero along with net income of $30k (most recent reported quarter), $133k, $298k and $32k for the past four quarters. At the end of June, Pacific Clean Water Technologies had $30k in cash to cover $764k in current liabilities. That’s a rather mixed picture but one that is not too bad – meaning investors might want to keep an eye on the stock.