Great Rock Dev Corp (PINK:GROC) With a Big Pump
Would you trust your money with a company that until about a month ago was in the Pink No Information tier on the OTC Markets, has three full-time employees and has generated annual revenues significantly lower compared to the ones from previous years? Stock Mister as well as some other promoters suggest that there’s nothing wrong with that, but if you have read through our articles before, you’d probably know that we’re not inclined to trust the paid newsletters too easily which means that we had to do a thorough check on Great Rock Dev Corp (PINK:GROC) and see if they really are the viable investment alternative that the pumpers are talking about.
Truth be told, in one aspect at least, GROC is different compared to most of the companies that we review on these pages – they managed to achieve a positive cash flow. Sure, it’s not a whole lot and they still have a disturbingly large working capital deficit, but in Pennyland, a net income is definitely something to be proud of. Here are the most important figures as found in their annual report for 2012:
- cash: $7 thousand
- current assets: $60 thousand
- current liabilities: $363 thousand
- revenue: $101 thousand
- net income: $14 thousand
Before you raid your bank account and put your life savings in GROC‘s shares, though, there are a few things to consider. For one, while there’s still a profit, it’s about 90% less from what they managed to generate back in 2011 when the revenues amounted to $495 thousand and the net income was $185 thousand. So, what happened?
Well, for reasons that are not explained in the report, GROC decided that they want to change the focus of their business. Up until the beginning of 2012 they were dealing with photovoltaic and tank-less hot water systems and, by the looks of things, they were relatively successful, but they decided that more money can be yielded from digging for gold and rare earth minerals in various mines in Canada and the US and in 2012 that is where most of their efforts were concentrated.
We have yet to see them digging gold out of the ground since the report also says that the sales were coming solely through the photovoltaic systems, but they seem to be quite optimistic about the whole venture and they disclose in their report that throughout the years, there have been numerous acquisitions of mining claims and rights. Among the various deals we found one that was closed in November 2012. It’s for some mining claims in Nova Scotia and GROC issued a total of 75 million shares in order to acquire them. That’s not the most interesting thing, though. What’s more intriguing is the entity that received the shares – NSU Resources Inc (PINK:NOST). We did a quick check on NOST and we found some interesting coincidences.
The first of which is the address of their principal office which is exactly the same as GROC‘s one – 500 Gran Street, Sault Ste Marie, Ontario, Canada. This immediately led us to believe that there might be some officers that are working at the two companies at the same time and, naturally enough, we were right. Mr. Luc C. Duchesne who is the CTO of GROC also acts as President and CEO of NOST, but he somehow manages to find some spare time to work at a third company. He is part of MSE Enviro-Tech Corp (PINK:MEVT) – an OTC Pink No Information company that has not filed any reports since 2008, has its principal offices on the same address as GROC and NOST and is currently traded at $0.001 per share.
All in all, Mr. Duchesne must be an extremely talented person and if any of his ventures is to succeed, multitasking should be something of a second nature to him. And while he’s trying to get the three companies off the ground, you should bear in mind that he has control over 75 million GROC shares and you should definitely perform the necessary due diligence before going for the pumpers’ promises.
