Alliance Creative Group, Inc. (OTCMKTS:ACGX) Reaches New 52-week High
After slumping by 14% during Friday’s session the stock of Alliance Creative Group, Inc. (OTCMKTS:ACGX) yesterday managed to bounce right back up. Although the first half of the session was rather turbulent ACGX didn’t move far from the 1 cent mark and at the end of the day closed at exactly that – $0.01. Investors even boosted the stock to an intraday high of $0.011, which is the new 52-week high for the company.
The positive performance was further facilitated by a new PR announcement issued before the start of the session. In it ACGX revealed their financial results for the first quarter of 2014 and they were quite impressive – $3,2 million in revenues and more than $275 thousand in net income. The official quarterly report covering the period should be filed in the second week of May.
As we said in our previous article about the company ACGX is far from the typical pennystock. They have not been resorting to fluff PRs and instead talk only about their operations and financial results. Furthermore ACGX were able to finish 2013 with a positive bottom line which is certainly a rare sight:
- $265 thousand cash
- $4.2 million total current assets
- $2.6 million total current liabilities
- $10.7 million revenues for the year
- $266 thousand net income
Still, there a couple of issues that should be addressed before jumping in. More than half of their assets consist of accounts receivable that may very well be impossible to collect in full. Not to mention that there are nearly $1.3 million in outstanding notes and debentures that if converted in full could result in the issuance of more than 750 million new shares.
On January 7 the CEO of the company decided to double the conversion feature of his 4 million preferred shares from 100-for-1 to 200-for-1, or in other words he could get 800 million common shares in addition to the 100 million he already has.
Another strange move for such a solid company was the decision to pay $10 000 for a whole month of promotion by the professional pumper Blue Horseshoe Stocks. The last email from them was sent last Friday but it failed to influence the stock and it closed in the red that day.
Another strange move for such a solid company was the decision to pay $10 000 for a whole month of promotion by the professional pumper Blue Horseshoe Stocks. The last email from them was sent last Friday but it failed to influence the stock and it closed in the red that day.
For now ACGX is still relatively cheap and it may go even higher thanks to its fundamentals but investors should keep in mind the possibility of more dilution and the effect of the promotional emails. Another company that displays both impressive results and the risks of a paid pump is Tanke, Inc. (OTCMKTS:TNKE). After a round of email touts was distributed among Investors on Sunday, yesterday the company exploded adding close to 20% to its value and closing at $0.13 per share. The jump happened on a record traded volume of nearly 4 million shares while the volume for Friday’s session was less than 70 thousand.
