CashMoneyPlays Trying to Help GROVEWARE TECH LTD (PINK:GROV) Back on their Feet

5GROV.pngA little over a week ago, some emails flooded the inboxes of investors and the pumpers sounded quite excited about the future of GROVEWARE TECH LTD (PINK:GROV). We weren’t convinced, though, and once we did the research we predicted that they won’t be going nowhere. That is exactly what happened.

GROV did gain some ground while the emails were still fresh, but soon after that, the price crashed heavily losing as much as 40% in a single day. The pumpers want to give it another go and they have initiated a second round of promotions.

Sadly, there is absolutely nothing new that could make us feel that this time the pump will have a different result. There have been no significant filings since the last promotion and, as we found out in the last article, the latest financial statement is anything but confidence-inspiring. Here is the recap of the most important financials once again:

  • cash: $12 thousand
  • current assets: $72 thousand
  • revenue: $87 thousand
  • net loss: $83 thousand

6GROV_logo.jpegWith this sort of figures, the pump was bound to end in disaster and we’re struggling to see why this, second round will be any different. Just like last time, the emails that promoters send out are garnished with a couple of optimistic press-releases from GROV themselves.

This time, they said that their mobile application that is supposed to make paper forms obsolete, has seen an increase in downloads of a whopping 300%. This sounds really good, but there are a couple of problems. According to Google Play, the app has been downloaded between 1,000 and 5,000 times during the last thirty days. If this is the 300% that GROV have been talking about, we reckon that they will need to gain a lot more recognition before they can turn a profit which is, of course, the main goal. The other problem that we can see is that the number of downloads has no bearing on the amount of revenues that GROV generate. It does sound confusing at first, but the truth is that the application is available for download through Google Play absolutely for free. It is only when you start using it, that you will need to pay a subscription fee which is how GROV generate revenues. And as we see from the reviews, some people are not willing to pay those subscriptions.

All these facts suggest that this week’s pump will end in exactly the same way as the previous one did, but at least it’s safe to say that GROV‘s CEO, Mr. Hrair Achkarian, is used to that sort of movement on his companies’ charts. As we mentioned in our previous article, he was also once the CEO of Great Wall Builders Ltd (PINK:GWBU), a company that has been pumped numerous times and that has fallen from a high of $2 per share around 10 months ago to just $0.01 right now.

He was also there with the former CFO of GROV, Scott Boyes who, by the way, recently received 500 thousand common shares TEXX.pngas a sort of farewell gift.

Speaking of bidding someone goodbye, we thought that we had already done that with CashMoneyPlays. They have been keeping quiet for the last months until they sent out the email about GROV yesterday. We even thought that they might have changed their business. We still remember their pumps, though. One of them was for Emperial Americas Inc (PINK:TEXX) and it took place back in May 2012. As you can see form the chart on the right it did little to stop TEXX‘s price from falling further down.

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