Cashless Pump Effort Sends American Commerce Solutions, Inc. [PINK:AACS] Flying
When Global Marketing Media (GMM) LLC issued a free momentum alert on American Commerce Solutions, Inc. [PINK:AACS] promising investors nice profit opportunities yesterday, we immediately deemed it necessary to trace the market performance of the stock to see whether it iwll endure the hype pressure. Ironically enough, the alert campaign served its purpose giving AACS shares a spectacular boost. Is there more to this stock than meets the eye, though?
Considering the total lack of recent corporate news and the absence of a tie-in press release, this trade alert proved a rather odd one as compared to conventional pumps. Yet, AACS turned out to be the highest gainer among the 100 top traded penny stocks in terms of dollar volume yesterday. Even though all of GMM’s promoters – 1-2-3 Stock Alerts, Penny Stock Circle, Penny Stock Players and The Stock Scout – explicitly denied having received any compensation for their services, however, that does not mean that they are working out of charity for your best interests only. So who else is benefitting from the campaign?
As shown on AACS‘s latest 10-Q report, the company is being run by two executives, i.e Chairman Robert E. Maxwell and CEO Daniel L. Hefner. The are both stockholders, owning 92.5 million and 36.9 million shares, respectively. In addition, they have both opted for deferring their executive compensation for the time being. This situation leaves a lot of room for shorting temptations, doesn’t it?
What is more, related parties holding notes issued by the company have the right to convert their notes into common stock at a discount to the fair market value. However, they have decided not to convert anything “until such time that the company’s market price of shares rise sufficiently”, the latter being exactly what the momentum alert on AACS is all about.
Finally, let us not forget that the lion’s share of AACS‘s long-term liabilities, i.e $2.17 million, is due to various shareholders. Since this debt will not be paid off any time soon, what is to prevent select shareholders from looking for alternative ways to rake in at least a portion of what is at stake?
As you can see, even the smallest alert could provide potential benefits to different groups of people. And since AACS‘s market value has not crashed down yet, we could safely assume that a huge sell-out is yet to take place. In this respect, we would rather forebear from getting in right now if we were to make an investment decision on AACS.
