Aristocrat Group Corp (OTCMKTS:ASCC) In Free Fall Once Again
Our attention was first drawn to Aristocrat Group Corp (OTCMKTS:ASCC) back in February when Stock Mister sent out a couple of emails about them. Under all the hype ASCC managed to register an increase and at one point the ticker even reached as high as $0.90 per share, but it soon crashed hard and by the beginning of March the price was hovering around $0.35. Then there was another promotional campaign around the beginning of April and this time, the effect was even more noticeable – within just a few short sessions ASCC managed to break through the $1 per share barrier registering its 52-week high of $1.25. Everything was extremely short-lived, however, and in less than two weeks, the price was back around $0.60. Some more emails arrived on April 14, but they did nothing but to depress the ticker even further and by the end of the month, it was hovering around $0.40. During May the pumpers kept quiet and, when left alone, ASCC continued to drop reaching its 52-week low on May 28 when it hit $0.21.
Apparently, some people weren’t terribly happy with the performance, they initiated a new promotional campaign and this time it was a whole lot bigger. Newsletters of all shapes and sizes jumped in and the total number of emails sent within just a couple of days amounts to more than 30. The ticker responded and after two green sessions it had jumped from $0.30 all the way to around $0.60. The very next day, however, it was all wiped out when around 46% in losses brought it back where it started. Then the pumpers went quiet again and it was up to the company and their own optimism to keep the stock alive.
A number of press releases came out, each one more optimistic than the one before it, speaking about the gluten-free, hand-crafted (whatever that means) vodka that they’ve been developing. Apparently, this was enough to give the price another nudge in the right direction and it kept investors interested in the stock throughout the rest of June. The latest (and probably the funniest) headline to come out of ASCC‘s HQ is dated June 27 and it talks about beer consumption in Texas. While we’re not sure what the connection between this and ASCC‘s premium vodka is, it resulted in 11% gains during the day. Then it was the same old story – no hype and no performance. Within just two weeks, the ticker obliterated around 27% of its value and after daily losses of around 17% on Friday, it broke below the $0.40 per share barrier once again.
What’s the moral of the story? Well, it would appear that without anyone creating some artificial excitement around the ticker, it simply refuses to display any sort of consistent performance. This could either be due to some people selling a large number of shares on the open market, or it could be caused by investors losing their confidence in ASCC and their success. If the latter is true, we can’t say that we’re surprised.
Even when calculated at Friday’s close, ASCC‘s market cap amounts to more than $24 million and that’s a lot for a company that has:
- total assets: $141 thousand
- total liabilities: $346 thousand
- no revenue since inception
- quarterly net loss: $363 thousand
It’s also a lot for a venture that shares its office with three other penny stocks – Nu Earth Corporation (OTCMKTS:NUEC), Rainbow Coral Corp (OTCBB:RBCC) and First Titan Corp (OTCBB:FTTN).
It’s also quite a lot for an enterprise that has Robert Federowicz at the helm. In case you’re not familiar with who he is, we would recommend that you take a quick look at our previous articles on ASCC as well as the ones for Quantum Int. Corp (OTCMKTS:QUAN), OBJ Enterprises f/k/a Obscene Jeans Corp. (OTCBB:OBJE) and the aforementioned FTTN.
Even if you think that all the red flags mentioned in our coverages of these companies are not enough to scare you away, we would recommend you keep in mind that ASCC has yet to show us a marketable product or, in fact, anything suggesting potential profitability. In fact, the only thing ASCC has to display at this point is some pretty horrific stock performance.
