Aristocrat Group Corp (OTCMKTS:ASCC)’s New Report Brings More Ups and Downs
Aristocrat Group Corp (OTCMKTS:ASCC) lost around 20% of their value during yesterday’s session on a total trading volume of around 767 thousand shares. That’s nothing new and it isn’t even as dramatic as the session on June 5 when the losses were over 46% and the volume amounted to more than 2.5 million shares. What is surprising is the fact that between these two rather scary drops ASCC were actually showing something of an upward trend.
We’ve written a fair few times about them and our first article came out on February 7 when ASCC‘s stock was traded around $0.84 per share. There was a paid pump and, predictably, just two sessions later, the ticker was hovering around $0.60.
Then there was some more promotional coverage in April and the movement this time wasn’t as sharp or as dramatic… until April 23 came when ASCC registered three red sessions in a row and lost 36%.
Then the pumpers kept quiet for about a month or so and just when we thought that they had forgotten about the ultra-premium vodka manufacturer with a virtual office, they mentioned ASCC again in an email at the start of June. This time the pump was a bit more expensive and the newsletters were a bit more persistent sending email after email telling us how much potential the ticker has. This did have an effect on the stock and it pushed it in the right direction… briefly. On June 3 and June 4 ASCC jumped from $0.335 per share all the way up to $0.62. On June 5, however, it all came crashing down when a total of 46% were wiped out in a single session.
Having all that in mind, we thought that the only thing that could lift the ticker off the bottom of the charts is a paid pump, but we turned out to be wrong. ASCC have been quite persistent with their press releases and they come on the news every other week telling us that the US vodka market is worth billions upon billions of dollars and they try desperately to persuade us that they are somehow going to capture a part of it. Predictably, we’re not convinced (we’ll get to that in a minute), but ASCC have still managed to push the ticker up by announcing a new distribution strategy and by telling us that people drink a lot of beer in Texas (taken directly from today’s press release).
The artificial hype however was not the only thing that pushed the price up during the last couple of days. Traders were quite eager to see the new quarterly report for the three months that ended on April 30 and, after a short delay, it was published on June 19. The session ended with nearly 10% in gains and we’re not sure why. Indeed, when compared to the statements from the previous periods, it does look better, but ASCC is still in quite a financial mess. Here are the most important figures:
- cash: $112 thousand
- current assets: $141 thousand
- current liabilities: $338 thousand
- no revenue
- quarterly net loss: $363 thousand
Looking at these financials, you’re probably wondering why we’re being so pessimistic about ASCC. After all, there are many other small cap ventures who are struggling financially and you might say that the companies that are now big have also had to battle working capital deficits at one point in the past.
The reason for our skepticism actually lies in a different place. The pumping action over the last couple of months has been so intense that the possibilities of ASCC losing all credibility among investors is very real. In many ways this particular ticker reminds us of Creative Edge Nutrition Inc (OTCMKTS:FITX) (who currently have a new campaign running for them) and you can see from the chart on the right that in a matter of two and a half months they have managed to wipe out a total of 84%.
The other thing that disturbs us is discussed in details in some of our previous articles, if you read through them, you will see that ASCC‘s CEO, Mr. Robert Federowicz is (or was) involved with a number of shady penny stocks like Quantum Int. Corp (OTCMKTS:QUAN), OBJ Enterprises, Inc. f/k/a Obscene Jeans Corp. (OTCBB:OBJE) and Emerging Health Sol. (OTCMKTS:EHSI), among others.
If you’re still not convinced, we would urge you to do your own due diligence and a thorough research before making any decisions that could cost you dearly.
