Aristocrat Group Corp (OTCMKTS:ASCC) Brought Under The Spotlight Once Again
Would you invest your hard-earned cash in a company that has lost around 70% of its value in exactly 2 months? You probably wouldn’t but, curiously, a number paid promoters who managed to sent us as much as 28 emails worth a total of $135 thousand today say that you should probably do just that. Yes, it’s Aristocrat Group Corp (OTCMKTS:ASCC) and their top-of-the-line vodka again.
As soon as we saw the ticker in the database, we thought: “How low can it go this time?”, but despite the fact that we’ve already seen how disappointing ASCC‘s performance can be, it is our job to look at all the companies that we cover with an unbiased eye and so that’s exactly what we did… again.
As always you have to start with the financial situation and in that respect we can have absolutely no idea how things are going simply because ASCC don’t deem it necessary to file a new 10-Q. If you have seen our previous reports on them, you will know that the latest one is for the quarter that ended on January 31. With that in mind all the things that the pumpers talk about like “huge potential growth” are based on nothing but hopes and dreams.
The hopes and dreams are, of course, directly connected with ASCC premium vodka brand so here’s the big question: “Have they managed to put it on sale?”. No, they haven’t. They did provide us with a date, however. Of sorts. In a press release dated May 21 they said that the premium vodka will hit the shelves this summer.
Speaking of press releases, the number of announcements that ASCC made during the last month or so is absolutely astonishing. The latest one came online today at 5AM and it says absolutely nothing new around the company’s operations. It’s just another forward-looking statement full of figures and optimistic projections about the liquor market as a whole and about the company in particular.
In the older press releases, we do see some information that might actually be useful for the shareholders, like for example, the stages they have gone through in regards to the permits from the governmental organizations, the fact that the vodka will be 100% gluten-free and the likes. And really if you believe all these things, you will probably think that ASCC are a solid company that is about to become a huge success. Is that the case?
If you are looking for a long-term investment, there are some things that you need to consider like for example the fact that ASCC‘s CEO, Mr. Robert Federowicz is running a number of other small cap publicly traded ventures. We last wrote about him when we covered Quantum Int. Corp (OTCMKTS:QUAN) on Friday but he was also involved with OBJ Enterprises, Inc. f/k/a Obscene Jeans Corp. (OTCBB:OBJE), he was named as consultant for Emerging Health Sol. (OTCMKTS:EHSI) (currently on the Grey Market sporting a skull and crossbones badge) and he is also the current CEO of First Titan Corp (OTCBB:FTTN) who got pumped back in mid-January only to fall down by as much as 46% in around four months. Speaking of which, we should point out that FTTN and ASCC share the same mailing address which appears to be available as a virtual office as well. You should also consider the fact that according to their latest filings they have only one employee and total assets amounting to just $42 thousand. With all these facts in mind, a long-term investment might not be the smartest move right now.
If, however, you just want to get in for a day trade and make a profit out of ASCC, things might look a little bit different. As we saw during the last two times pumps, the ticker can move up as well as down. And during the April promotion, it reached $1.25 per share which is an astonishingly high price for a company that is in a deep financial mess. It’s also an opportunity for a profit. You can see however, that the peaks were extremely short-lived and soon after, it all came crashing down. On the whole, we reckon that the risks are way too high and we recommend that you consider them carefully before investing any money in ASCC.
