In our previous article about Atacama Resources International Inc. (OTCMKTS:ACRL), the diversified business holding company, we mentioned the significant variation in the share price, indicating that something is going on. We knew that the company’s stock chart is fascinating, but we could not mention the reasons behind the share appreciation.
Usually, when trading volume and share price increase without an apparent reason, the market participants claim that the company may be manipulating its stock. It is a logical rationale, but it seems applicable in this case. On August 3, 2017, OTCMKTS:ACRL noted that it had been made aware of stock promotion activities and it had no involvement in such activities. Additionally, the company accepted that the promotion might have moved the market.
The interesting point is that after the promotion was disclosed, the volume continued to surprise the market. For this particular reason along with several exciting announcements, we believe that our readers will appreciate this new update.
Check the following stock chart, and note how the trading volume increased recently. More than 100 million shares changed hands in a short period. Additionally, the stock returns have been extraordinary:
For starters, ACRL was founded in 2013 and is headquartered in Kenosha, Wisconsin. It is focused on several activities in very different sectors, including mining of gold, silver, diamonds, graphite, and cobalt as well as the development of smartphone applications called Good2Drive, Fit4Duty.
Shareholders can diversify and obtain income from very different industries, which is, many times, appreciated by individuals, who have no time for creating a diversified portfolio of companies. The operating risk seems to be lower here.
In August 2017, the company said that it was not involved in the promotion. It also noted that shareholders owning more than 10% of the company as well as third parties were not directly or indirectly involved.
We believe that it was our duty to confirm that the company is acting correctly and by the regulatory framework.
In August, a test version of Good2Drive Fleet, a new mobile application that helps in testing commercial driver’s cognitive alertness before heading to work, was also released. Check the following video. It contains everything that you need to know:
With growing traffic crashes in the United States every year, in our opinion, if the product becomes known and many start using it, the profits can be enormous as the market is very significant. It is difficult to say if it will be successful, but it seems very well positioned. The system is patented and has been proven to accurately identify cognitive impairment whether it is due to drinking, drugs, medications, or drowsiness.
The company seems to be rushing to receive sales from the new app since it was noted in September that Calgary, Alberta-based Surepoint Group, with over 300 employees was going to start using the app. Trevor Muir, Surepoint Group’s CEO, said the following words:
“After hearing about Good2Drive/Fleet and how the company would benefit from the use of the Good2Drive app, we were eager to engage in the pilot project now underway in one of our branches in Northern BC. After getting familiar with how the company monitors and controls the results of the testing, we are scheduled to introduce Good2Drive/Fleet throughout the company. The 90-second test taken every day by each of our drivers is a small price to pay for the benefits that Surepoint Group will enjoy.” Source
Additionally, on December 12, 2017, the company released that the app was ready to be distributed through Google Play and the iTunes store. Furthermore, some more features were included in the new press release. The app offers a ‘Corporate Dashboard’ that provides employee information, so that information about the test history of each worker can be presented in pie shape or bar graph format. The software also provides trends regarding each, which permits the employer to take corrective action when necessary.
On November 9, 2017, more information was received about the company claims and leases located in the Eby and Otto Townships within the Larder Lake Mining Division. According to the company, the results of the magnetometer survey for the Atacama 1 and 2 properties were ready and “indicate multiple areas where further prospecting for the presence of gold is recommended.” The following words are what the reader needs to know:
“The magnetic signature indicates the presence of at least four magnetic units or ‘hot spots’ that indicate magnetically elevated areas. These most likely represent intrusive bodies that may produce favorable alteration. One hot spot appears as a moderately stronger magnetic signature indicating that the intense signature may be related to a possible shallow south dipping magnetic unit. The most interesting hot spot appears as a north-south offset intersecting a magnetically elevated linear feature indicating that an alteration has occurred resulting in the destruction of magnetite.” Source
In sum, the report recommends the company to continue its exploration in this area.
The most crucial question is the amount and the gold production that can be found in this area. It is tough to get to know the answer to that, but it is interesting to get to know that the property is located less than four miles southwest of the Kirkland Lake Gold, Inc. southern mine, which is considered as one of the highest grade gold mines in the world.
There is more.
On September 19, 2017, it was released that the company had acquired mineral rights for the Mystery Graphite Property, which consists of 1740 acres located about 60 miles south of Timmins, Ontario. It is a very significant development since the demand for mined graphite was said to be exploding right now as the green economy grows. The primary driver of this revolution is the increase in the sale of laptops, smartphones, and electric cars among other devices that require this mineral. We appreciate the new announcement.
Finally, on November 30, 2017, it also released the geological evaluation of its Cabo Property from Canadian Exploration Services Ltd. According to the new report, the concentration of mineral per ton is outstanding; 1.22% cobalt was recorded in one of the fifteen sample outcrops and rock dumps taken from four separate shafts and pits. The company noted that the concentration is “viable,” and it exceeded expectations.
The Recent Spike and Conclusion
We believe that several transactions executed by insiders are the reason behind the recent share price appreciation. Check out the following table to which we had access:
|Jan 8, 2018||SWARTZ DONALD HOWARD|
|Dec 26, 2017||SWARTZ DONALD HOWARD|
|Dec 21, 2017||SWARTZ DONALD HOWARD|
|Dec 20, 2017||WEBB WILLIAM D. JR.|
Currently trading with a market cap of $0.6 million, OTCMKTS:ACRL is an interesting story among small caps. We believe that the market is expecting to receive information about the recapitalization of the company’s balance sheet. It could make the share price run.
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Disclosure: We have no position in ACRL and have not been compensated for this article.
Image courtesy of Emilio Labrador via Flickr