American Community Development Group, Inc. (OTCMKTS:ACYD) Moves on News, Buyback
On Friday the stock of American Community Development Group, Inc. (OTCMKTS:ACYD) moved 84% up and closed the session at half a cent per share. The rapid-fire press release campaign the company has been conducting and an announced buyback plan likely helped the price movement.
In late August ACYD went through a merger with a Wialan Technologies LLC, with the surviving entity soon to be re-registered with the SEC as Wialan Technologies, Inc. and be assigned a new symbol. The merger was accompanied by a change in management, with Wialan’s Mr. Peabody being appointed to the surviving entity’s CEO spot.
The merger was followed by a wave of press releases that sought to raise awareness of the company’s new focus and direction. Wialan is a maker of industrial-grade wireless access points that allegedly can serve over 100 customers at a time and are housed in what the company claims are patented hermetically sealed, convection-cooled boxes.
ACYD hosted a conference call on September 12, explaining how the company intends to build investor value. The announcement of plans of a share buyback of an unspecified ‘significant number’ of company shares on the open market to stabilize prices seems to have done its job as ACYD stock surged 140% on the day following the call. A Friday press release explains that the buyback will continue until the price has gone up 300% from Thursday’s close, or up to about $0.01 per share. The call also mentions plans for uplisting out of pink sheets and into the OTCQB tier.
Sadly, ACYD has a lot of work to do before achieving this. The company is currently in the Pink Limited Info tier, as the most current financial report from ACYD covers the period ended March 2013 – not exactly current info. The March report contains dismal figures of no cash, $3 thousand in quarterly revenues and modest net loss. With the Q2 report missing and no consolidated balance sheet explaining what the Wialan merger brought to the table in terms of assets, liabilities and revenue streams, investors may find a lot to worry about despite the promises of a bright future.
The latest public filing from ACYD mentions in passing a $10 million equity line of financing and the company may have a growing business in place but there is currently no way to check the facts behind it and before updated and consolidated filings are posted, traders would do well to be extra careful.
Other big movers in Friday’s market include Montalvo Spirits, Inc. (OTCBB:TQLA) who gained 30% and stopped at $0.42 per share. TranSwitch Corp. (OTCMKTS:TXCC) moved by a similar percentage but in the other direction, ending the session 38% down, at $0.15 per share.
