American Community Development Group, Inc. (OTCMKTS:ACYD) Crashes Below 1 Cent
After nearly two weeks of constant climbing the stock of American Community Development Group, Inc. (OTCMKTS:ACYD) suffered a harsh correction during yesterday’s session. The stock dropped by more than 30% and once again returned to double zero territory closing at $0.0094. Traded volume remained well above the average of 17 million with a total of 26 million shares changing hands.
The reason behind the impressive run up the stockchart for a company that is currently put in the OTCMarkets Pink Limited information tier was the recently announced merger with Wialan Technologies LLC. Wialan are a manufacturer of industrial grade wireless equipment. Their product is capable of supporting more than 100 end-users simultaneously while covering larger areas with less equipment.
They also have a patent granted form the United States Patent and Trademark Office (USPTO) for a “Hermetically sealed access point for a wireless network” enabling them to use a more efficient way of cooling the hardware parts of their device. This far their product has been installed in airports, municipalities, apartment buildings, parks, marinas.
Fortunately for their shareholders the idea of a 1-for-25 reverse split that was suggested as part of the merger has been scrapped and instead Wialan announced that an aggressive buyback of up to 100 million shares will begin as of October 1. The goal will be to boost share price above the 1 cent mark and keep it there. We don’t know if the buyback will go through though because the ticker is already hovering at the target price.
Wailan appear to have a stable business, offer a completed product and are capable of generating revenues. The problem is that until a consolidated report for the new entity is filed we have no way of knowing how profitable the organizations really is.
Yesterday the stock of 3D Eye Solutions, Inc. (OTCMKTS:TDEY) also crashed hard losing nearly half of its value and dropping down to $0.0045. On the other hand the Alkaline Water Co, Inc. (OTCBB:WTER) is once again closing in on $1 currently trading for $0.86