Auscrete Corp (OTCMKTS:ASCK) Has High Expectations

Auscrete Corp (OTCMKTS:ASCK) hit the OTC markets with a flurry a few weeks ago. This was driven by several email newsletters touting the company's prospects. Unfortunately, for those investors that bought into the hype, it's been all downhill ever since. However, that isn't to say the company is not without promise. ASCK has high expectations to be a major player in the energy efficient housing business. The key is whether or not CEO John Spovieri can deliver on his promises or not.ASCK is a manufacturer and construction contractor of "GREEN" energy efficient housing and commercial structures built from Auscrete developed lightweight aerated concrete and insulation wall and roof panels. Structures built of this medium are very low maintanence and, being concrete, are highly resistant to insects and mold. They have considerable mass and are highly resistant to hurricane forces and earth tremors. They will not catch fire and burn. The whole structure is fastened together in a monocoque design and will not easily destruct like timber structures and the insulation value, which is very high, is not subject to settling as happens in wood structured homes. Auscrete is currently planning to expand its pilot manufacturing plant so that it can produce the equivelant of 80-100 houses per year, depending on size.Driving the interest in ASCK was the announcement last month of a $19.6 million contract to build affordable housing. ASCK said that they have sourced first level financing to establish their new building and casting plant. This will enable Auscrete to commence a contract starting next spring for the construction of 130 affordable family homes. The $19.6 million contract will take 3 years to complete and there are indications that it could be extended to include a further 92 homes. The two housing estates have acceptable requirements for exterior appearance rules and the homes will range generally from Southwestern to Spanish and Ranch style. The new plant will be able to produce the equivelant of 100 homes per year or a combination of residential and commercial structures. Auscrete’s existing pilot plant has a capacity output of only 4-5 houses per year.CEO John Spoveri told SmallCapVoice.com:

“I enjoyed talking about our innovative technology, the new building and casting plant that we will use to launch into the contract starting next Spring for the construction of 130 affordable family homes, and our future plans for commercial projects as well. Audio presentations disseminated through the web and to our shareholder base is a powerful way to get our story to a wider audience.”

Company director Cliff Jett further added:

“The company builds very attractive, modern homes, with soaring ceilings, open plan interiors, gourmet kitchens and full environmental system with garages and lots of storage for less than $100 per square foot, turnkey. These new products address one of the largest consumer markets in the US and worldwide –housing. The structures are impervious to insect infestation and mold, won’t rot and are many times stronger than stick built construction, which is a big advantage if the consumer lives in tornado alley. The life of these structures is measurable, not in years, but in centuries."

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ASCK has become an exciting story on the OTC markets with explosive volume. However, the company has minimal revenues and assets. It remains to be seen whether the company can deliver. It is certainly worth keeping an eye on as I'm sure there we'll hear plenty more from ASCK in 2016. Don't miss out on the latest updates from Insider Financial on ASCK and all of our other hot stock picks.

Disclosure: We have no position in ASCK either long or short. We have not been compensated for this article.