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Superior Venture Corp (OTCMKTS:ILUS) Keeps Getting Pumped

Superior Venture Corp (OTCMKTS:ILUS) Keeps Getting Pumped
Written by
Jarrod Wesson
Published on
June 2, 2017
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Stock promoters of Superior Venture Corp (Cache Elite, Inc.) (OTCMKTS:ILUS), and its predecessor ‘Ilustrato pictures International, Inc.’ have been extracting money from the market for a long time. The stock has been pumped and dumped so many times, thus we believed that an article to warn investors was necessary. Just have a look at the recent market movements. Let's see if you can identify the stock pattern:In this article, we will review a new promoting mail received by one of the editors, wherein triple-digit returns are promised. In addition, we will review whether the business is profitable.The company - Its financial statements are not clearILUS is a holding company providing a wide range of services. The company is focused on high end kitchen furnishing, and e-commerce. The following products are sold: kitchen cabinets, decorative hardware, stones, appliances, and cabinet pulls. The business strategy is that the company does not do warehousing. The products are brought from the manufacturer to the client once they are sold online. In the last quarterly communication, it was mentioned that the company is working on market awareness:

"In 2016 and beyond we expect to continue to drive broad-based market awareness among both sections of our company focusing on the end user of our products. Our marketing channels continue to expand as our number of satisfied customers increase, creating additional referrals to augment our traditional print, online and social media efforts" Source

Have a look at the financial statements; the large amount of liabilities, the little amount of cash in hand, and the receivables the company has as of December 31, 2016.

  • Cash: $17,000
  • Net Receivables: $79,000
  • Property Plant and Equipment: $73,000
  • Total assets: $170,000
  • Total liabilities: $642,000

If we have correctly understood the business model, the company sells directly to the customers. We did not find on the company's website any reference to financing to clients. Thus, we don't understand the net receivables that represent 46% of the total assets. On the top of it, the company has made almost $1.021 million in total revenues as of December 31, 2016, but according to OTCmarkets.com, the amount of sales, general and administrative expenses were zero. The problem with this company is not only that the company is almost dead, as the amount of liabilities is almost 4x its assets, but the real issue is that the financial accounts shown do not make any sense. Make your own conclusions.Stock PromotionThe editors made an effort by finding an email, in which the company is touted. Triple-digit return are promised. The subject of the mail is the following "ILUS is our New 1 CENT Summer Kick-off Alert with 300% Upside Potential! See why..". But, it does not end there. The promoter says that the upside potential may be 306%. What is the reason? Have a look:

"Since then, ILUS has slowly crept back down to the same support levels it rallied off of TWICE.Now showing signs of life on the volume side, could ILUS be priming for another run? Keep in mind, a return to 52 Week Highs of .06 would yield traders up to 306% GAINS! Talk about UPSIDE POTENTIAL!"

Additionally, it is shown that the company is making revenues, but it forgets to say that the net income is negative. You can check it on OTCMarkets.com. This is the image captured from that website only showing the top of the P&L:Then, at the end of the mail, we can read that this is nothing else than an advertisement and the amount paid to the stock promoter:

"This report/release/profile is a commercial advertisement and is for general information purposes only. We are engaged in the business of marketing and advertising companies for monetary compensation unless otherwise stated below. The paying party may own shares and may liquidate them during the promotional period. COMPENSATION: it has been compensated thirty thousand dollars cash via bank wire by a third party for a one day Cache Elite Inc. advertising services contract. Epicstockpicks.com does not own any shares of ILUS. Epicstockpicks.com does not investigate the background of any third party. The third party may have shares and may liquidate it, which may negatively affect the stock price. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company."

Final warning and ConclusionSo, the pump and dump pattern on the charts was created by market participants who received the touting emails and bought shares. What can happen now? In our opinion, more emails may be sent in the next weeks until the promo dollars dry up. When this happens or the OTCMarkets organization discloses the stock promotion, market participants will stop buying, and may sell their shares, and the price may fall. Some market participants may lose money. Hence, we warn email subscribers thinking about purchasing shares to be very careful. The party may be over soon. In any case scenario, we will keep informing about the promotion activities of the stock, thus be alert. We will be updating our subscribers as soon as we know more. For the latest updates on ILUS, sign up below!Disclosure: We have no position in ILUS and have not been compensated for this article.

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