Is American Security Resources Corporation (OTCMKTS:ARSC) Headed For Rock Bottom

[[tagnumber 0]][[tagnumber 1]]The stock of American Security Resources Corporation (OTCMKTS:ARSC) is far from something that should attract investors, even those who are trading run–down OTC companies that clearly have no future prospects of doing anything else than sell shares.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The company stock itself rarely makes any percentile movements, but when it does, they are quite big. More recently, the company has come out with a few press releases in blatant attempts to tout its stock. This is clearly visible from the April 20 PR that stated [[tagnumber 6]]ARSC [[tagnumber 7]]has “brought its financial data current through public disclosure on OTC Markets”.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We don‘t know what year the management of [[tagnumber 6]]ARSC [[tagnumber 7]]lives in, but its the second quarter of 2015 and financial results covering the yearly period ended December 31, 2013 are nowhere near being “current”. Not only is that bad, but the numbers contained in the said report are tragic, even for an OTC entity.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 17]] [[tagnumber 18]]cash: $8 (yes, that‘s 8 bucks)[[tagnumber 19]] [[tagnumber 18]]current assets: $71 (no, we didn‘t miss any zeros)[[tagnumber 19]] [[tagnumber 18]]current liabilities: $3,201,443[[tagnumber 19]] [[tagnumber 18]]revenue: ZERO[[tagnumber 19]] [[tagnumber 18]]net loss: $599,594[[tagnumber 19]] [[tagnumber 28]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]If this isn‘t enough of a red flag you should have in mind that [[tagnumber 6]]ARSC [[tagnumber 7]]performed a 1 for 8000 reverse split in the end of last year. Still, the company states that it is planning to “[[tagnumber 34]]enhance shareholders‘ equity by acquiring profitable businesses and or assets[[tagnumber 35]]”. The plan is to do so without causing dilution. How does this happen when your last financial report shows that you got $8 in the bank baffles us.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Another thing that leaves us wondering on the probability that [[tagnumber 6]]ARSC [[tagnumber 7]]will follow on the words from its press release is the mentioned reverse split. Why would you perform such a massive split if you are not intending to issue more shares for acquisitions and dilute some more. [[tagnumber 6]]ARSC [[tagnumber 7]]is certainly not acquiring anything without issuance of stock. There simply is no other way.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Their latest press release states that [[tagnumber 6]]ARSC [[tagnumber 7]]intends to provide services to small and mid–cap companies including corporate restructuring, turnaround consulting, debt consolidation, corporate documentation services, forward acquisitions et al. Judging by the track record that [[tagnumber 6]]ARSC [[tagnumber 7]]has shown so far, however, this sounds like a meth dealer offering rehabilitation help to an addict.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]How will a company that thinks it is current with its filings in Q2 of 2015 after filing a report for 2013 under the alternative reporting standard in the OTC markets help others with “[[tagnumber 34]]corporate documentation services[[tagnumber 35]]” proves to be hard to wrap around our heads.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]In any case, the last few session were disastrous for [[tagnumber 6]]ARSC [[tagnumber 7]]which fell 76.92% to a close at $0.0009 yesterday. The volume was the highest since the beginning of the year, but the 119 million shares that switched hands were only enough to generate $132 thousand in daily trade value.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]It seems that the news might have a positive effect after all. Today [[tagnumber 6]]ARSC [[tagnumber 7]]is sitting 11.11% higher from yesterday‘s close in just an hour of trading. Will it manage to close in the green, however, is for time to tell.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]In any case, the red flags surrounding the company are simply too much to be ignored and you should also be sure to do your own due diligence and weigh out the risks before making any investment decisions.[[tagnumber 2]]