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GRAND CAP VENTURES (OTCMKTS:GRCV) Is A Low Float Runner

GRAND CAP VENTURES (OTCMKTS:GRCV) Is A Low Float Runner
Written by
Jarrod Wesson
Published on
September 21, 2017
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InsidrFinancial

Today, we need to talk about GRAND CAP VENTURES (OTCMKTS: GRCV), which provides consultancy services to other companies.Why?Because the Insider Financial team has identified large spikes in the stock chart that indicate something is happening. Have a look at what happened in the beginning of September. Also note that 30 million shares exchanged hands the same day. 1 month chart for GRCVThe interesting thing is that the company did not release anything new on this day. Thus, we became very interested and decided to study the company's share structure and shareholders. We will provide our conclusions in this article.BusinessGrand Capital Ventures Inc., which was formerly known as Crowne Ventures Inc., was founded in 1991 and is headquartered in Florida. It explains its business activity with the following words:

"Grand Capital Ventures, Inc. specializes in working with underperforming companies and bringing together the resources needed for them to attain financial stability and growth. Our focus is on companies showing a positive upside while striving to bring new technologies and unique products to market." Source: OTC Markets

Since the company is quite old, so it has obviously gone through several transactions, which, we believe, has given the management abundant business expertise. In particular, GRCV has acquired several businesses in its history. We are noting their names, as perhaps old readers can remember some of them:

  • On October 28, 2013, GRCV wholly acquired Corporate Excellence Consulting Inc.
  • On October 28, 2013, GRCV also acquired DMD Lighting & Energy Control Systems Inc.
  • On June 12, 2014, GRCV acquired Invest Smart Corp, a Florida company.
  • On June 16, 2014, GRCV acquired MVP Partners Corp, a Wyoming company.
  • On June 16, 2014, GRCV acquired Stelee Enterprises Inc. including assets, which consisted of double and single family residential housing in the Cleveland market and surrounding areas.

We believe that as a result of this amount of different companies, the company should count as of today with the necessary know-how to help companies finance and grow their business. As the company did not sell any of its businesses acquired (it is not noted in the last 10-k), we believe that their business is still running under the supervision of GRCV.Recent Developments and FinancialsAs we said before, the company does not release a lot of news. So, the share price movements that we saw in the charts should have been created by somebody outside the company. The last communication was this 10-Q, which included valuable information.We could find the financial statements of GRCV in that document. Have a look, these are the most remarkable accounts:

  • Cash & Cash Equivalents: $15,150.23
  • Inventory: $115,000.00
  • Property, Plant, & Equipment: $2,247,000
  • Furniture & Fixtures: $7,800.53 7,800.53
  • Total Assets: $3,389,250.76
  • Notes Payable: $240,315.56
  • Total Liabilities $428,283.39

What did we see?For the period ending June 30, 2015, the company showed large amount of properties, large amount of assets, and few liabilities. We appreciated these financial accounts and believe that as the company did not communicate new financial statements, these assets should still be owned.Additionally, the following is the share structure for the period ending June 30, 2015:

  • Common Stock – 6,000,000,000 authorized, and 2,352,109,572 outstanding.
  • Preferred Stock Class A - 5,000,000 authorized, and 5,000,000 outstanding.
  • Preferred Stock Class B - 90,000,000 authorized and 0 outstanding.
  • Preferred Stock Class C - 20,000,000 authorized, and 0 outstanding.
  • Preferred Stock Class D - 50,000,000 authorized, and 0 outstanding.

This information is key for those trying to get the net asset per share, which will, without any doubt, surprise the reader.How do we explain the spikes?We had a look at the quarterly report released in 2015 and found that there are a few shareholders who own large amount of shares. This means that the float,which is not specified in the OTC Markets exchange, may be very low. Thus, the amount of shares owned by the public is quite low.What does it mean?It means that the liquidity in the market may be reduced, thus if any of these shareholders wants to buy or sell a big stake, the share price would be largely affected. This is what we believe happened in the beginning of September. Although it is true that some market participants may benefit from these spikes and may obtain fantastic returns on these days, yet it is extremely difficult to know when they are about to happen. ConclusionCurrently trading with a market cap of almost $3 million, GRCV is an unknown small cap with interesting financial accounts and a small float. We appreciated the financial accounts and would be more interested if the company publishes more recent financial reports. Regarding the recent trading activity, it seems that there are market participants playing the volatility and low liquidity.We will be updating our subscribers as soon as we know more. For the latest updates on GRCV, sign up below!Image courtesy of Naoki Nakashima via FlickrDisclosure: We have no position in GRCV and have not been compensated for this article.

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