Allerayde SAB, Inc. (OTCMKTS:ASAB) Crashes, Can Get Worse

Allerayde SAB, Inc. (OTCMKTS:ASAB) had its most active trading session yesterday. We received tout emails from a few pumper newsletters, which can explain the sudden activity. The price drop can also be explained, but we’ll get to that later.

ASAB was only a couple of minutes into the session when it dropped to $0.25 per share which remained the low for the day. The price quickly went back up, but not all the way, and ASAB closed down 16.83% at $0.42 per share.

The aforementioned newsletters were: Equities On The Rise, Bling Bling Penny Stocks, Get Rich Penny Stocks, and Sirius Stocks. While the other three are relatively new, Sirius Stocks has a long history of pump jobs. Its compensation for the pump on ASAB is also much higher than those of the rest. The disclaimer says “Siri.Biz expects to be compensated $500,000 euros…”

The long history and the big compensation don’t mean the picks of this pumper are better for traders. The previous stock pumped by Sirius Stocks was BluForest, Inc. (OTCMKTS:BLUF) in August. The chart of BLUF says more than words could.

Apart from the past failures of the pumpers there are other reasons to believe ASAB can go much lower than yesterday’s close. Here are some of the numbers in the latest quarterly report of the company:

• cash – $nil
• total assets – $4,000
• total liabilities – $2,570,088
• revenues – $nil

Since the company has no recent press releases or filings we one can safely assume things haven’t changed dramatically. At $0.42 per share the market valuation of ASAB is about $37 million. Traders should keep in mind the financial situation of the company when they decide whether that’s a realistic market cap.