AMER COMMUNITY DEV INC (PINK:ACDP) has been moving up since the beginning of this week. On Monday, the stock soared 61% and its traded volume notably jumped up, while yesterday the climb continued.
Apparently, the impressive gain was a result of the recent news released by American Community. After a month of silence, on May 23 the company reported the signing of a Joint Venture Agreement for up to 35.000 acres of oil and gas exploration lands in Union County, USA. According to the announcement, the operator of the project will be High Energy Resources Inc. and ACDP will have a 50% working interest in the six-well program. Further, the company will be engaged in financing activities to fund its working interest position.
The optimistic projections of the company’s management pumped up ACDP stock and its price immediately jumped up. However, the up move is still on, this time on promotions.
Encouraged by the huge gain, American Community has obviously decided to secure its market position and the stock was promoted yesterday. The campaign was held by Buzz Stocks, though neither the paying party, nor any compensation for the promotion have been revealed. Anyway, the promoter alerted on the new Joint Venture of ACDP and the stock managed to hold the bullish trend. Now, the question is how long will it continue?[BANNER]
AMER COMMUNITY DEV INC, or MOBILE AIRWAVES NEW, is an emerging junior oil and gas company focused on exploiting oil and gas reserves onshore within the USA. The company is still in the process of assembling a seasoned team of managers and technical professionals and promises aggressive asset growth and shareholder value enhancement. However, obviously ACDP is not ready to hold its promises yet.
According to its 10-Q report, as of March 31 this year ACDP had over $5 million in liabilities, while its cash on hand pointed zero. Apart from these facts, the retained deficit reached almost $7 million and the company failed to cover the losses.
Judging by the financial results, it looks like American Community has been more into selling shares of common stock than into working out its problematic issues. Now, the company relies on its Joint Venture, making optimistic projections for the future, while at the same time supporting its stock price by promotions.