Alliance Creative Group, Inc. (OTCMKTS:ACGX) Jumps On Pump
We have been wondering what the deal with Alliance Creative Group, Inc. (OTCMKTS:ACGX) is for a while. They are a rather strange company, that is not reporting to the SEC, but rather under the alternative reporting standard in the OTC Markets and we can’t seem to figure out why.
Their reports show a company that is supposedly operating at a profit and if they were filing these reports with the SEC they might be looking at being traded in higher tiers and even making a transition to the NASDAQ.
Even thought the reports paint a bright picture we can’t say the same for the charts of the company. The stock of ACGX has a very inconsistent movement and either makes big percentile movements in both directions, or doesn’t move at all. We can say the same about their volume, which in the last month generated trade values from $1 to $817 thousand per day. Pretty uncertain, don’t you think?
After remaining idle in Friday’s session ACGX‘s stock started this week with a blast after they were pumped by StockMister and Premier Equity Reports. They jumped a whopping 263% in price yesterday on a volume well above their average of 5.5 million shares. The total amount of shares that switched hands in the transition from $0.0019 to $0.0069 came at a mind-blowing 110 million, generating a trade value of $817 thousand, which nears their market cap of $837 thousand.
You would wonder what you will get for that amount of money and that is the most concerning part about ACGX. With a market cap of $837 thousand and the numbers of prime interest from their latest report filed accordingly to the alternative reporting standard it all starts to smell fishy. Take a look for yourself and draw your own conclusions.
- cash: $29 thousand
- total current assets: $3.9 million
- current liabilities: $2 million
- total liabilities: $3.8 million
- revenue: $2.5 million
- net income: $97 thousand
It seems that according to their official report you can strike a very lucrative bargain, buying ACGX shares, but we still have our doubts. Another thing that should disturb you is the lack of press releases and news from the company. We reckon that a company with a booming business will at least inform investors from time to time about current developments. Well, that’s not the case here. The last press release the company made was more than 2 months ago on May 15, which is another red sign for them.
Furthermore, by taking a look at the Career Opportunities section of their website, they seem to be hiring for quite a lot of positions and we can’t seem to figure out if they want to ruin their supposedly profitable business, because the net income of $97 thousand will simply not be enough to cover the needs of such a big expansion of their team. At the moment they are looking for a graphic designer, sales manager, sales associate, appointment setter, print CSR, AR clerk and a marketing intern, which we reckon will be a lot for the current net income of $97 thousand and might destabilise their financials.
Having in mind that apart from being shady, they are pumped, makes them one of the riskiest stocks out there so be sure to do a lot of due diligence and weigh out the risks for yourself.
Another company that is currently being promoted by the same outlets as ACGX and made a huge jump in price is Amanasu Technologies Holdings Corp. (OTCMKTS:ANSU) who gained a whopping 4435% in the last 2 trading sessions, but just like ACGX are dropping today and are currently priced at $0.85. On the other hand SafeStich Medical, Inc. (OTCBB:SFES), didn’t rely on such tricks to jump 101% in yesterday’s session, but are also falling today with 24% down in over an hour of trading and a current price of $1.05
