Clean Wind Energy Tower, Inc. Possible Momentum Play

CWET

Our latest momentum play is Clean Wind Energy Tower, Inc. (OTCBB:CWET).

Clean Wind Energy Tower, Inc., operating through its wholly-owned subsidiary Clean Wind Energy, Inc., is an early stage development stage company that plans to design, develop, and construct large downdraft towers to produce electricity (see Wikipedia for an explanation of downdraft towers).

Clean Wind Energy is in the renewable energy business, which is seeing growth all over the world. Management believes the company is well positioned to move forward on developing and constructing installations of its towers in the United States and elsewhere.

Recently the company has made a series of positive announcements which in turn has generated a lot of attention. In the last two trading days over 4 million shares have traded hands and the share price has gone from the $0.10 – $0.12 range up to a high (and close) of $0.18.

Experience has shown that often the share prices of small companies that suddenly receive a lot of attention can skyrocket for a period of time. This gives investors looking for adventure the potential for excellent short term profits.

Today CWET is trading generally in the mid 18 to mid 19 cent range after jumping to 24 cents in pre-market trading.  Trading volumes over the past few hours have been much lower than their peaks late yesterday and early today, so it’s possible prices may drop this afternoon and offer investors better pricing.  Or, as always,  maybe not.

Investors interested in CWET should be prepared to jump in quickly and take their profits (if any) at a level they choose without getting too greedy. On the buy side, we recommend limiting bid prices in order to get in at a reasonable price. If CWET turns out to have a dramatic price run-up and you miss out because of a low bid, there’s always next time. In our opinion this is much better than getting stuck buying near the peak price.

CWET at this point in time is obviously a high risk, speculative investment. The company has reported no revenues through September 30, 2011 and at that date had negative equity. This stock is only for investors with large risk appetites looking for a speculative investment with the potential of great short term profits.

Investors in CWET should be prepared to lose their entire investment.

Always remember to do your own due diligence, checking up company filings and consulting with an investment professional. Additionally, remember our disclaimer.

You may also go to the company’s website for more information.