SNWT is trading around 20 cents. I see lot of action on SNWT and is continuing its upward trend with lots of volume at this point of time.
San West Inc, SNWT www.sanwestinc.com has been increasing revenues organically and inorganically. The company has been enhancing its exposure through advertising and events that witness a huge attendance of 250,000 people.
Top Investment Highlights on SNWT
San West recently issued aggressive financial guidance for 2010 which was highlighted by a minimal revenue expectation of $6 million to $8 million.
Prior to issuing this outlook, SNWT obtained $10,000,000 in equity financing from an institutional investor which it will utilize to finance an accelerated growth plan by funding future acquisitions, major marketing campaigns and new and innovative R&D initiatives. Going forward, the recent increase in merger & acquisition activity in the off-road sector coupled with SNWT's new found capital source and stellar financial performance should enable the company to exceed original objectives.
SNWT completed a 5 for 1 forward stock split on 11/02/09 that awarded 4 additional shares of its common stock to all shareholders of record at the close of trading on 11/02/09. In addition to spurring retail interest in the stock, this maneuver was a prime indication of management's dedication to maximizing shareholder value.
San West Inc. has executed a number of business transactions over the past six months that hold the potential to significantly broaden the scope of its business and boost revenues by more than $6 million in 2010 over 2009. These ventures also provide access to more than 100 leading actions sports brands ncluding Oakley, No Fear, Fox and VP Racing Fuels.
San West recently launched a five-month advertising campaign and Truggy Give-A-Way consisting of ‘on-air’, event and interactive market exposure. The program is expected to reach more than 300,000 per week and generate an incremental sales increase of as much as $500,000 and reach in excess of 300,000 consumers per week.
The company was recently featured on an episode of “The Price is Right”, America's longest-running game show with more than 5 million viewers, which featured a giveaway of a new Buggy World/County Imports off-road vehicle. Due to the positive response, San West plans to aggressively ramp up advertising in 2010.
The Company recently partnered with www.countyimports.com the 2nd largest online retailer in the ORV market. CI logged 2008 sales of nearly $3.2 million which management plans on exceeding in 2010. The business segment generated nearly $175,000 in online sales between 11/17/09 and 12/17/09 and management is expected to soon provide a sales update for the dates ranging from 12/18/09 to 1/17/10.
SNWT is not surprising considering the strong move higher on Wednesday. On Thursday SNWT gapped higher and opened at $0.1565 and quickly hit a high of $0.158. This created a very strong sell signal and investors drove the price to a low of $0.13. The stock ended the day at $0.132. Despite the sell-off, SNWT was able to hold on to most of its gains from the Wednesday rally. This could be a signal that investors are comfortable with higher prices.
Mr. Drechsler added, "The website already attracts more than 60,000 visitors per month, a figure that we expect to grow to approximately 135,000 over the near-term as we continue to optimize our website and our marketing strategies
SNWT has traded around $0.11 for the last five sessions but its consolidation appears to be over. The stock opened at $0.115 and hit a low of $0.11. However this dip must have created a strong buy signal because investors managed to drive the stock to a high of $0.152, which is where it closed. This is a gain of 38% with Wednesday’s strong close there is not much standing in the way of February’s high of $0.21.
SNWT just announced revenue guidance for 2010 of between $6 Million and $8 Million!
Hitting even the lower range of that forecast means SNWT is expecting to TRIPLE Revenues in 2010.
Wait, the news gets even better!
SNWT has also announced it has obtained $10,000,000 in equity financing from an institutional investor.
Frank Drechsler, CEO of SNWT, summed up the impact of this financing on the company as follows:
"This significant financing arrangement gives San West and its subsidiaries access to growth capital, enabling us to accelerate our growth strategy and implement additional marketing initiatives to take full advantage of the increasing demand for personal motorsports vehicles, parts, services and accessories,"
A strong 2010 revenue forecast plus $10 MILLION in new financing makes SNWT a company worth watching in my opinion!