Alliance Creative Group, Inc. (OTCMKTS:ACGX) Takes Off on Improved Earnings

Alliance Creative Group, Inc. (OTCMKTS:ACGX) is a mysterious newcomer that has been making an upward trend in the past month. The price, though at a two-year peak, remains relatively low. ACGX added 40% at the end of last week, reaching $0.007. Dollar volumes were a bit above $683 million, slim trading compared to other tickers. ACGX0414.png

What is even stranger is that ACGX has not even touched the legal pot trend, and is surging to the great delight of patient investors. For the last time, ACGX tried to bounce last fall, but failed- and now 2014 has arrived with earnings announcements. ACGX is seen by investors as a rather solid printing and advertising business, which is unfortunately undervalued. The expectation is that the ACGX stocks will soon see the price of a few pennies. BBDA0414.png

To prove its viability, ACGX recently posted the latest earnings results until December 2013. The company showed:

  • $3,266,312 revenues
  • $843,112 gross profit
  • $208,356 net income, 55% increase from same quarter in 2012
  • $266,137 net income for the whole of 2013

Added to this is the news that ACGX really took off on the markets, marking more than $2 million in revenues for the first two months of the new year, reportedly on increased orders.

Strangely, this double-zero stock has a relatively good share structure. Its $3 market cap is indeed low, being carried by about 539 million shares outstanding. The free float is above 438 million shares outstanding, which means a comparatively low count of hidden holdings.

Now, all investors have to wait is an increase in buying pressure. The past two days show that things could move along very quickly, despite the overall subdued behavior of ACGX until now. The gains have been small and gradual indeed, as ACGX started the year around $0.002.

An example of a relatively stable company with a depressed stock was Bebida Beverage, Inc. (OTCMKTS:BBDA). This ticker, due to an overloaded share structure, is unable to create enough of a squeeze, so the best a buying spree could do was give a boost from triple-zero to double-zero prices. BBDA is now back at $0.0013.

Speaking of printing, Resource Ventures, Inc. (OTCMKTS:REVI) managed to make the best of a smallish printing and advertising operations. The company attached itself to Hemp, Inc. (OTCMKTS:HEMP), thus proclaiming itself one of the go-to advertisers in the legal pot sector. But this only led REVI to a price of $0.02, after the initial enthusiasm evaporated.

It is quite easy to like ACGX, and the moment seems right- but this ticker has had runs in the past. Volumes are also comparatively slim, and it is best to be aware of your preferred time frame, to avoid getting stuck with shares that are hard to sell. ACGX may look like a rare opportunity, but the company still invites some questioning.

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