Aristocrat Group Corp (PINK:ASCC) With a Second Wave of Promotions
Back on February 6, we spotted a couple of emails from Stock Mister that were attempting to give Aristocrat Group Corp (PINK:ASCC) a boost. We wrote about them and we saw that they had very little money to back up the promises we found in the promotional emails. Sure enough, once the excitement was gone, they plummeted and lost a substantial amount of pennies in just a couple of weeks or so. We observed the fall and thought that we won’t need to write about ASCC any time soon.
We had nearly forgotten about them but when we received the email from Tip.us today, we checked into their chart to see how they have been getting on. It’s fair to say that it did hurt when our jaws hit the floor but, nevertheless, we had to try and find out what was the cause for the surge that started around March 18.
The first thing to check was their filings to see if they have published any new financial reports. We were happy to find that they have, indeed. It’s the 10-Q for the period that ended on January 31 and since we knew that they have gained quite a lot of ground during the last couple of weeks, we thought that it would look rather good. It didn’t. Here’s a recap of the financials we found in it:
- total assets: $42 thousand in cash
- current liabilities: $227 thousand
- no revenue since inception
- quarterly net loss: $127 thousand
It’s fair to say that, based on that information alone, an investment in ASCC would be a risky undertaking (putting it mildly), and we knew that the surge in the price is not due to this alone. The next thing to check was the press releases.
This is where ASCC have put most of their efforts and, judging by the current price of over $1 per share, the forward-looking statements seem to be luring quite a lot of investors. We read how they are about to launch their first brand of vodka and that they are even preparing a second one. Then we read about their excitement about entering the flavored vodka segment. And all of the PR’s are garnished by bright projections about the future of the business and claims that it will soon become the national drink in the USA.
We’re no experts and we can’t predict if this will happen or not, but what we’re particularly unsure about is ASSC’s success. The reason for this is very simple and you can see it in the summary of their financials above. We’re somehow struggling to see how they will be able to market not one, but two brands of vodka, premium ones at that, with just $42 thousand. Furthermore, we can’t even be sure if they will get the license to distill and produce spirits, which is quite important. In one of the many announcements they say that they are still awaiting approval.
All in all, we can say that if the press releases are true, ASCC‘s office has been quite busy recently, but they still have nothing to convince us of their future success. Since we mentioned their office, we should point out what we found about it. When we were doing our research for our previous article we saw that they are sharing the same office space as well as the same CEO with another small cap company – First Titan Corp (OTC:FTTN). Now, when we dug even deeper, we found that this suite is occupied by two more publicly traded penny stocks – Rainbow Coral Corp (OTC:RBCC) and NuEarth Corp. f/k/a ECO-RX Inc New (PINK:NUEC). The address is exactly the same – 495 Grand Blvd. Miramar Beach, FL 32550 – down to the number of the suite and we’re struggling to see how they all manage to fit inside.
The address is not the only thing that these companies have in common, though. We can see that all of them have been promoted in the recent and not so recent past and just like so many of their counterparts, they have all crashed leaving a lot of inexperienced investors out of pocket. In order to avoid such a fate, you should carefully weigh the risks before making any quick decisions on ASCC.
