Alkaline Water Company Inc (OTCMKTS:WTER) Gets Pumped Again

Many penny stock traders remember Alkaline Water Company Inc (OTCMKTS:WTER) from 2013. Back then, the company was a big time penny stock promotion that captured investors imagination that WTER was going to revolutionize the bottled water market with its Alkaline88 water beverage products. Unfortunately for investors that bought into the hype, the company never lived up to its promises and proceeded to decimate its shareholder base with dilution and toxic financings. Now, the company is back and up to its old tricks again. Penny stock investors are asking if this time will be any different.Alkaline Water Company describes itself as having "developed an innovative, state of the art, proprietary electrolysis process that produces healthy alkaline water for a balanced lifestyle. The company is focused on the business of distributing and marketing the retail sale of its cost-effective packaged Alkaline88 water beverage products. The Alkaline Water Company Inc. is currently in the midst of a national mass-market expansion program and is available for consumer sales at major retail locations across the United States." The company says that "Alkaline88 is a premier bottled alkaline drinking water with an 8.8-pH balance. Enhanced with trace minerals and electrolytes, the product offers consumers the unique opportunity to purchase alkaline water in conveniently packaged 500ml, 700ml, and 1-liter, 3-liter and 1-gallon sizes."The latest press release from the company was to alert investors that Prime Equity Research had issued a new report on WTER. The report called WTER a "Speculative Buy" and they put a price target on the stock of $3.09 per share. While on the surface this report looks bullish, investors need to read the small print at the end of the report.

Alkaline Water Co. paid Prime Equity Research $30,500 in advance for independent equity coverage and distribution.

Just before this press release went out on April 28, there were a number of promo emails sent on WTER and there was a relatively bullish article on the blog Seeking Alpha. While the author did talk about some of the risks concerning WTER, it summed up the article with:

Solid execution and continued expansion by Alkaline Water could significantly reward investors at this low valuation. The stock easily trades at multiples of the current valuation if the $18 million sales goal is met with further growth forecasted for FY18.

But what really got the stock moving and the chat rooms and message boards excited was a co-packing agreement with Texas-based CForce Bottling announced on April 26. The press release went on to say that "CForce is strategically located in Navasota, just off Highway 6, northwest of Houston, Texas. The brand new 43,650 sq. ft. facility is owned and operated by businesswoman and majority owner Gena Norris in partnership with her noted husband Chuck. CForce is a premium bottling manufacturer delivering high quality products while striving to achieve environmental leadership within the category." WTER CEO Steven Nickolas added:

"The opening of this incredible facility has created a great opportunity for us to work with the Norris' at a perfect time in support of our growth of Alkaline88 across the region. Their bottling facility can currently produce over $1 million in finished goods per month. This access to increased capacity comes at the perfect time as we gain more shelf space locally and continue to build our loyal and health conscious consumer base across the nation. It has been extremely gratifying to work with such consummate professionals as Gena and Chuck Norris along with their topnotch team of professionals as we look forward to a mutually beneficial future ahead."

Wow Chuck Norris! Pretty big deal right? Well if you go to cforce.com, you'll see:

At CFORCE Bottling Co., we provide full service bottling operations with state of the art equipment. Bulk bottle sales, co-packing and bulk water services are all available through our Navasota, TX headquarters. If you'd like more information about these services, please contact Chris.Woelful@CFORCE.com for details and pricing.

You or I could get a deal with CFORCE and Chuck Norris. What WTER accomplished made for a good press release and that's it. WTER is up to its old tricks again and issuing overly bullish press releases. Don't fall into the trap like so many investors before. Don't be left holding the bag! We will be updating Insider Financial as soon as we know more. For continuing coverage on WTER, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in WTER and have not been compensated for this article.