Shares in STWA Inc. (OTC: ZERO.OB) have almost returned to their pre-rally levels when the penny stock made its run from $0.29 to $0.73 gaining 151%. Anyone investing or trading penny stocks should add STWA to their watch list as shares of ZERO.OB closed flat in the last trading session at $0.43. STWA develops energy efficient technology in the multi-billion dollar oil pipeline and diesel engine markets.
STWA announced last week results from the Department of Energy’s Rocky Mountain Oilfield Testing Center which proved the company’s Applied Oil Technology (AOT) worked very well. The test reported a 40.01% viscosity reduction. The reduction in viscosity led to the improvement of the test pipeline’s pressure drop by 40.04%.
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STWA Stock Snap Shot:
Market Cap: 53.02M
52-Week High
(Mar 13, 2012): 0.73
52-Week Low
(Aug 8, 2011): 0.18
Avg Vol (3 month): 341,029
Avg Vol (10 day): 424,357
Shares Outstanding: 123.30M
Float: 119.22M
% Held by Insiders: 2.94%
STWA is in the oil pipeline business. Pipeline construction is highly expensive. STWA’s AOT could potentially reduce the pipe diameters and pump sizes that are required for new pipeline construction which would result in enormous financial savings to pipeline owners and operators.
To view the SEC filings of STWA, click here.
Bottom Line: Oil prices are rising and the industry is actively seeking new and innovative cost-savings and throughput capacity improvement. STWA could be that answer which means that their penny stock, ZERO.OB, needs to be added to the list of penny stocks monitored daily immediately.
ZERO.OB has had two rallies already this year and STWA already is doing business with the DOE, not hoping to submit a proposal to them. Having the DOE test results verifying that AOT improves flow rates and reduces energy consumption will be the milestone that finally book some revenues for STWA in the near future.
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