American Community (OTCMKTS:ACYD)’s Ascend Continues
The merger between American Community (OTCMKTS:ACYD) and Wialan Technologies, Inc. was completed at the end of August and, as we mentioned in our previous articles, this was a massively positive piece of news for the tormented shareholders who were invested in a company that has never managed to become successful in sticking to a business plan that was, at best, rather confusing.
At first it seemed that the positive developments just kept on coming. The people that took the helm organized a couple of conference calls to explain to everybody just how bright the future is and the five press releases that came out of the company HQ between September 6 and September 20 supported the forward-looking projections. Predictably, the ticker, which had been occupying the double-zero territory for more than a year, surged and registered some terrific gains for investors who got in early. $0.01 per share was dealt with with ease and it seemed like there was nothing to stop ACYD‘s ascend.
The PR department went quiet on September 20, but surprisingly, the ticker didn’t seem all that bothered. There were a few corrections but the start of October brought a new, even stronger surge which was particularly strange considering the fact that there weren’t any promotions to support it. Last Friday, we mentioned that the steep appreciation might be caused by the company repurchasing shares on the open market, but then again, with no confirmation, explaining it was still quite difficult. If you take a look at the article, you’ll also see that we weren’t sure if it will last much longer.
So far, ACYD seems to be going strong. It failed to finish last week on a positive note and corrected by about 10% on Friday, but Monday and Tuesday more than made up for the losses. Yesterday, ACYD gained around 15% closing the session at $0.0468 and shifting more than 7.8 million shares. It did it, but not without the help of ACYD‘s first press release in over three weeks.
The announcement came out minutes after the end of Monday’s session and it informed us about not one, but two things. ACYD have apparently engaged the services of a patent lawyer called Ruben Alcoba and have already filed their first application with the USPTO. It is for the much talked about Wireless Early Warning System and, of course, the press release explains in details how clever it is and how well its tests have gone. All in all, it looks like everything should go according to plan and the stock should continue flying high. “Should” is a critical word, however.
When the merger took place, ACYD‘s new management team decided to turn the company into a fully reporting SEC filer ( previously, the ticker was traded on the Pink Tier and the public documents were put together using the alternative reporting standard). Of course, that is a good thing since the information will be more organized and it will give shareholders and potential investors a clearer picture of the company’s financial position. Unfortunately, the complex process of changing the reporting standards delays the consolidated financial statement that everyone is expecting.
Currently, ACYD‘s shareholders have no way of knowing how much money their company has which, in turn, brings an added layer of risk to a potential investment. When they are eventually ready with the 10-Q, we should see if the market cap, which, as of yesterday, stands at more than $118 million, is even marginally close to being justified. If it is, everything should be good, but if it’s not, the ticker will probably take the plunge catching quite a lot of traders off-guard. Make sure you have this in mind while making your investment decision.
On the bright side, there are no traceable promotions running for ACYD, which, for a company that has gone through an overhaul in the recent months, is quite an achievement. As we wrote earlier today, Ehouse Global, Inc. f/k/a Veterans In Packaging Inc (OTCBB:EHOS) also underwent a change in the business plan and management team and the pumpers were quick to pick the ticker up. As you can see from the chart on the right, the results are quite catastrophic.