So far August must have been an exciting month for Hrair Achkarian. Whatever shares he holds in his company, their value has been going up and down almost every day.
On Monday shares of GroveWare Technologies Ltd. (PINK:GROV) surged 32% only to drop back 22.45% yesterday.
Paid pumpers have been on GROV since Aug. 12 and there are still new campaigns every other day.
The main promoter behind the current pump effort seems to be the eStocksDaily Team, a wholly-owned subsidiary of the Allan James Group. The total compensation for their efforts is coming to $500 thousand for August.[BANNER]
They, in turn, have paid a bunch of other pumper newsletters to tout GROV, including Penny Stock Circle and the newsletters operated by Galaxy LLC, which in turn paid other smaller outfits.
The result is that GROV is getting a lot of pumper coverage these days. Promoters are up to their usual hype tactics claiming whatever they can come up with; one of the latest pump mails insinuates that GROV’s technology may be a “game changer”.
However, there is something very wrong with the GROV picture. For one, at $0.38 per share, GROV has a market cap of nearly $117 million. We encourage readers to decide whether this is a remotely realistic valuation of a company with approximately $50 thousand total assets and $740 thousand in total current liabilities.
Traders should also consider the fact that the company is run by Hrair Achkarian, who was briefly the CEO and President of GWBU, before it became one of the pump jobs that cost hopeful investors millions of dollars.
Last, but not least, the technology of GROV is MobiTask, an application which has less than 5000 installs, according to Google Play. For Q2 of 2012 the company reported $40 thousand in revenues and net loss of $95 thousand, but somehow the management comes up with insane projections of millions of pre-tax earnings for 2013 and 2014. Keep in mind that’s the same management which was involved in GWBU.
With that being the reality of GROV, traders may be well-advised to be extremely careful when deciding on a valuation of the company. As for Mr. Achkarian, he has decided to give himself an annual salary of $250 thousand, so even if his shares go down to triple zeroes, he will have some money.
