Arcis Resources Corp. (OTCMKTS:ARCS) Crashes Right Back Down
Arcis Resources Corp. (OTCMKTS:ARCS) managed to make two really impressive jumps last week, but it was clear from the get-go that its gains were unretainable. True to form, the ticker crashed right back down in yesterday’s session.
Quite a few people got excited over the news that the company is to perform a 1.2 for 1 forward split – that much is obvious by ARCS‘s charts. Said investors should probably have not done that. Why?
Well, forward splits are not usually a big deal to begin with. They are meant to increase liquidity of high priced stock by making it more affordable – but since we’re talking about a double zero ticker, that’s hardly an issue here. Which sort of means that the ticker didn’t have a reason to jump in the first place. Which automatically means that the chance of it retaining its gains was minimal.
About as minimal as the assets that the company had when it last reported:
- total assets – $104 thousand
- current liabilities – $493 thousand
- quarterly revenues – $21 thousand
- quarterly net loss – $122 thousand
Mind you, that report is now severely outdated, and ARCS has not seen fit to provide investors with a more current one, rightly earning a Caveat Emptor stamp on top of its OTC Markets profile page.
Suffice it to say that it would probably be wise for investors to think a while on what that Jolly Roger sign stands for, and realize that the threats to ARCS investor value are very real.
Case in point – between March and September 2015 alone, ARCS has issued 880 million shares of common stock. 375 million of those came into existence as a result of conversions of debt at an undisclosed price. Need we say more on the matter?
Let the buyer be ware.
