After a recent string of consistent weeks, Great Wall Builders (GWBU) has been dealt a heavy blow today, dropping a staggering 61%. Between May 15th, 2012 and June 15th, 2012, the company cruised close to the $1.50 mark. Such consistently is typically an indication of a strong summer. However, after dropping to $0.55 from $0.87 at the end of today’s trading, the company is once again struggling to find answers.
Great Wall Builders is a company that is still in its development stage. It focuses on providing homes with solar integrated systems in Texas, as well as focuses on designing and then selling the homes that offer such solar integration. What the company is best known for, and one of the main reasons its garnered any of the success that it has, is because of its FEED technology. FEED technology stands for ‘Fuel Efficiency and Emissions Device’ and is a fuel-conditioning technology that reduces fuel consumption, as well as reduces the amount of pollutants released into the environment. However, what is really striking competitors and investors alike is that the FEED technology actually increases engine horsepower.
The main goal of Great Wall Builders is to commercialize its Start FEED technology. One of the biggest steps towards this commercialization came on June 13th, 2012. The company announced that Mercedes-Benz Italy had begun testing the FEED technology on four Mercedes vehicles. These tests, conducted over the next month in Mercedes-Benz facilities in Italy, may end up being the determining factor in how the summer months play out.
CEO Daniele Brazzi is confident that the test will demonstrate just how effective of the Start FEED technology is.
And if the test doesn’t play out as it should? What if the emissions aren’t drastically reduced?
Good questions. Consider what else was released today, June 21st, 2012 – Brazzi announced the commercial plans to introduce FEED into the American marketplace, specifically to help the diesel trucking industry meet the new standards in the forthcoming Clean Air Act.
More bold claims by the Great Wall Builders CEO. One would think, considering the consistency of the company has had in the last month, as well as the prospect of entering highly profitable American marketplace, that the stock would either a) remain where it’s been, or b) increase slightly. But for the company to have a drop of over 60%? In it itself, this is a staggeringly dreadful achievement.
Some analysts are reporting that this is just a minor blip in what will be a fast and monumental rebound. In fact, www.stockreads.com has reported that they believe the drop was done artificially by shorters. This means that the drop will be covered and that Great Wall Builders will bounce to over $1.00. On the other hand, the drop could be because of how ambiguous the new Clean Air Act is made out to be. Until substantial evidence is made that the Clean Air Act will be followed through with in full, Great Wall Builder’s success in the American marketplace hangs in the balance.
However, if the Act is successful, and if the FEED technology is effective, then the company may bounce even higher than $1.00.