USA Real Estate Holding Co. (OTCMKTS:USTC) Shows Signs of Waking Up
USA Real Estate Holding Co. (OTCMKTS:USTC) received a relatively small promotional campaign back in March and April. Unfortunately for the people who paid money to have the ticker pumped, the effects on the stock performance were rather disappointing.
The emails started flying around on March 10 and came from a host of promoters, all receiving different amounts of cash for their efforts. The market, however, seemed unimpressed and the volumes remained tiny. At the end of March, something happened and, for no apparent reason, USTC plummeted to the ground, incinerating around 64% of the market cap in a matter of just three sessions.
The pumpers didn’t seem all that bothered and touting continued. Once again, they were unable to push the stock up but on April 10, the company decided to step in.
USTC issued a press release through which they updated their shareholders on some important matters. They said that they’ll be able to file their annual report on time and mentioned that there’s been a slight change in the business plan. They will still remained focus on the real estate market, but they also want to offer commercial properties to players in the booming marijuana industry.
Normally, the mere mention of the word “marijuana” would have caused a lot of stir on the market, but in the case of USTC, the press release’s timing was absolutely terrible. Just two hours after it hit the wire, one of the most notable names in the pot industry, Growlife Inc (OTCMKTS:PHOT), got suspended by the SEC due to some uncertainties around the company’s operations. The subsequent shockwave shook the whole industry and it apparently prevented USTC from making a run.
Once again, the pumpers didn’t seem to mind and the touting continued with full force. They were hoping that they’ll finally be able to give the stock a push, but they were in for a nasty surprise.
The 2013 annual report came out on April 16 and it showed that on December 31, 2013, USTC had:
- total assets: $15
- total liabilities: $132 thousand
- no revenue since inception
- yearly net loss: $28 thousand
Investors saw what they had on their hands and, somewhat understandably, they hit the panic button. In a matter of three sessions, USTC plummeted from over $0.02 per share to just $0.001. Even the pumpers seemed embarrassed by the 95% drop and on April 17, they simply stopped sending in their alerts.
With no awareness being raised, the volumes subsided and the ticker was left to fluctuate between $0.001 and $0.002. It seemed like it could slip further down, but this week, we’ve seen it being raised from hibernation yet again.
There aren’t any traceable paid promotions right now, but despite this, USTC logged four consecutive green sessions which means that it’s currently sitting at $0.0033 (266% above the levels occupied at the end of last week). Volumes are substantial as well and there’s no shortage of people who apparently think that the company can succeed. Some of the more forward-looking investors around the message boards even reckon that an $0.80 share price is easily achievable. But how realistic are these projections?
At the current price, USTC‘s market cap is hovering just above the $6 million mark. That might not sound like much, but it does appear to be a bit of a stretch for an enterprise that operates out of a residential house and has only $15 in the bank. We’ll leave it up to you to calculate the market cap at $0.80 and decide whether it’s justifiable.
