Pumpers and AMERICAN DIVERSIFIED (PINK:ADHC) Continue Their Romance
The name that AMERICAN DIVERSIFIED (PINK:ADHC) have chosen for their company is quite accurate when it comes to describing their business. This can be a good thing since it means that they have numerous sources of revenue, but it can also be a bad thing because it can sometimes distract companies from the truly reliable ways of making money.
American Diversified Holdings Corp. is not the first name for ADHC and when you do a quick internet search on their older names, you’ll find an array of press-releases full of promises for big revenues from prospective acquisitions. A quick look at the latest ADHC financial report shows that most of these acquisitions have failed for various reasons. At one point you even start wondering if they are operating at all.
Fortunately, they are. At least that’s what they say. The latest announcements are mainly connected to the development of a mobile application that is supposed to turn the world of healthcare upside down by helping doctors treat patients more efficiently. There are a few other PR’s that have been coming out of ADHC‘s headquarters explaining the developments around one of their subsidiaries – Rebel Networks, a web hosting provider.
If you have not been trapped in a time capsule for the last 20 years, you would know that both the mobile application market and the hosting industry are extremely lucrative business sectors, so while we were waiting for ADHC‘s latest quarterly report to appear on our screens we were quite excited and we were waiting for the big figures under the “Revenues” section. Unfortunately, we were left disappointed. Here’s a recap of the most important financials as of October 31, 2012:
- cash: $5,334
- total assets: $139 thousand
- total liabilities: $781 thousand
- no revenue
- quarterly net loss: $172 thousand
We can understand that the mHealth mobile app is still not ready, although they announced that they are starting the development back in 2011, but we’re struggling to see how their hosting business has failed to generate even a dime of revenue.
The filings don’t say explicitly when Rebel Networks was acquired, but we can see that ADHC have talked about it in press-releases as old as August 2012, which means that the financials of the subsidiary should be in the statement published in December.
As for their mobile application, neither their website, nor the reports say when it will be ready. We reckon that if they don’t get it going soon, they will have some trouble convincing potential investors that ADHC will turn into anything more than a penny stock.
And if the promotions continue, it will be nearly impossible. Over the years we have seen so many pumps being carried out on ADHC that we’re struggling to pick the one that failed the most. The promotion from the end of July 2012 is a strong contender, though. As seen from their chart, ADHC did gain some ground while the emails were flying around, but as soon as they stopped, the ticker went through the floor.
Maybe the third parties paying for the current pumps think that they have chosen more trustworthy promoters this time, but they’re wrong. One of the last emails that hit our database is from Jet-Life Penny Stocks and we’re all too familiar with their track record. One of their latest and most spectacular failures was Automotive Resource Network Holdings Inc (PINK:ARNH). Jet-Life’s email was sent just minutes before the opening of the trading session on March 12. Eight hours later ARNH‘s shares were a whopping 85% cheaper.
