Stock Mister Plays with Alexandria Advantage Warranty Co (OTCMKTS:AAWC)

Alexandria Advantage Warranty Co (OTCMKTS:AAWC) first popped up on the screens on June 12 when it managed to gain a massive 366% in a matter of a single session. The volume was not that great, but the few people that managed to jump in were presented with a tasty profit opportunity.

During the following days, AAWC hesitated a bit, but the ticker was still holding its own above the $0.02 per share mark. Yesterday, however, Stock Mister and a few other promotional outfits decided to step in and by the looks of things, they are about to ruin the party. A total of four emails hit our inbox before the start of yesterday’s session, but instead of giving the ticker a push, they squashed it. In a matter of six and a half hours, AAWC lost 36% of its market cap and it stopped at $0.015 per share.

So, the pumpers failed to inflate the ticker’s price, but it must be said that, considering Stock Mister’s track record, this is not really that much of a surprise. What’s more, there are plenty of other things that could be pushing AAWC towards the bottom of the chart.

At the end of March, for example, the management team started talking about the acquisition of a clever piece of engine technology that, in their own words, is supposed to change the industry as we know it. They said that they need to make a few cash payments and they expressed their confidence in the future success.

On March 31, just days after promising that they can change the engine industry, the management team recorded the following financials:

  • cash: $222
  • current assets: $242,036
  • total liabilities: $0
  • quarterly revenues: $0
  • quarterly net loss: $12,515

The clever engine technology hasn’t been mentioned ever since and although AAWC announced yesterday that they want to acquire a franchisor of automotive service and repair centers, the performance displayed by the ticker during the next few hours shows that people are not too keen on trusting them.

Again, not really a surprise. If you take the time to do some research, you’ll see that Jay Pignatello, AAWC‘s CEO, has been involved with numerous other penny stock enterprises like Hop-On Inc (OTCMKTS:HPNN), American Diversified Holdings Corp (OTCMKTS:ADHC), and Tobacco One, Inc. (revoked by the SEC in 2009). Neither of his previous endeavors is particularly successful and there’s nothing to suggest that AAWC will be any different.

Even if you disregard the appalling financial results, you’ll see that the reports themselves are an absolute mess. As you probably know, AAWC was previously called Technoconcepts and it was traded as TCPS. The name and the ticker symbol weren’t the only things that were different. The business plan was also changed when the company assumed its new identity, but despite this, the financial reports which were published months after the transformation, still talk about TPCS‘ ideas, and not AAWC‘s ones.

For reasons that are not particularly clear, the statements also talk (at some considerable length at that) about the financial results achieved during 2007, but, perhaps more worryingly, they fail to tell potential investors what the share structure looks like.

According to the report for the fourth calendar quarter of last year, on December 31, 2014, there were about 1.3 billion shares issued and outstanding. In January, the company effected a colossal 1 for 8,500 reverse split, but despite this, if the latest report is anything to go by, the O/S count was still sitting at 1.3 billion on March 31.

The more experienced among you should know that putting your money on the line without knowing anything about the share structure is extremely dangerous.

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