Aristocrat Group Corp (OTCMKTS:ASCC) Bring Tears To The Eyes Of Investors Once Again

When we were covering Aristocrat Group Corp (OTCMKTS:ASCC)’s first pump back in February, they were just getting started with their premium, luxury, top-of-the-line vodka business, after failing miserably with creating a chain of daycare centers. This sounds like an odd transition, but still, they issued some exciting press releases, some pumpers got paid to tout the ticker and this whole thing resulted in… a massive crash.

Undaunted, ASCC continued working (at least their PR department did) and they issued a number of press releases according to which their trendy vodka is the gold mine that their shareholders have been hoping for. A second pump was inevitable and, sure enough, it came around during the second half of March. This time, the downfall wasn’t as sudden and as spectacular as the one from February, and before it came, there was a rather big surge in the green direction. ASCC even broke through the $1 per share barrier hitting a high of $1.25. By the end of the month, however, they were pretty much back where they started at around $0.60.

The pumpers went eerily quiet after that, and since there was nothing to keep the interest around the stock alive, it continued sliding down. By the end of May, it hovered around $0.25 when someone decided that a new pump is in order. The scenario was pretty much the same – a lot of money was paid (the total budget according to our database is $135 thousand), a lot of press releases were issued and, sure enough, a lot of shares were traded. In fact, the volume reached new records when we saw 2.5 million shares changing hands in a single session.

The result was also pretty much the same – we saw three consecutive trading sessions that ended in the green with the biggest gains amounting to 58% for a day and an intraday high of a whopping $0.70 per share. That might not sound like much, but estimated at that price, ASCC‘s market cap amounts to over $43 million which is a lot for a company whose total assets consist of just $42 thousand in cash.

We’re pretty sure that many people fell for the pumpers’ bright promises and at some point they probably thought: “This almost sounds too good to be true”. Sure enough, that was exactly the case and yesterday, the vertical drop left a lot of badly burnt investors. The ticker opened at $0.62 and immediately started its descend. The closing bell stopped it at $0.32 which means that in just one session, ASCC managed to wipe out around 46% of their value. Pretty underwhelming performance out of a solid company that is going to make it big time in the $5.5 billion U.S. vodka market (that’s what they said in yesterday’s press release, anyway).

Is it a surprise? Well, we’re pretty sure that the people who bought in on the hype were quite shocked, but we were definitely seeing it coming. How? Simple, by doing some research.

You can have a look through the previous articles that we’ve written on ASCC and you will see all about their financial situation, about their virtual office, about the fact that they share it with a few other penny stocks and, of course about Robert Federowicz.

Only a few minutes worth of research reveals that Mr. Federowicz was (and in some cases, still is) involved with a number of penny stocks with shady history like First Titan Corp (OTCBB:FTTN), OBJ Enterprises, Inc. f/k/a Obscene Jeans Corp. (OTCBB:OBJE) and Emerging Health Sol. (OTCMKTS:EHSI). You will also find tonnes of posts all over blogs and message boards from unhappy investors who talk about the misdemeanors that he has done.

Whether they have a point is up to you to decide but even if they don’t, make sure that you check out the chart on the right. It’s for Quantum Int. Corp (OTCMKTS:QUAN), just one of Mr. Federowicz’s other business ventures. Just like ASCC, QUAN started to gaining ground around the end of May, but it’s been on a downward slope for the past few days and we reckon that there’s little to stop it.