ARSC - On The Cusp Of An Impressive Rally

ARSC came out with great news for its shareholders today.  Investors greeted this news by buying shares of stock and I don't think this is a one day event.  Rather this could be the start of a very real and sustainable run for ARSC.  One that could see this stock trading 200-300% higher in the short term from current levels.

For one this stock has been completely abandoned.  Up until today no one wanted to own this stock and long time shareholders have jumped overboard .  You can see it in the chart, it has been capitulation, and in my view this is the time you should be buying, when a stock is down at its low, forgotten, and disliked.  I think these long time former shareholders will resurface just as this stock is getting momentum as jealousy reins supreme in the penny stock market.  Selling a stock just before it mounts an impressive rally can be a tough pill to swallow, especially when you've held it through all the ups and downs.  I think this stock may even see those long time shareholders jump back in when they realize this stock is finally making a solid move higher. That will add to the buying pressure.

Some may claim the share structure is large, but compared to other stocks in its price range I beg to differ.  PIHN which is trading 300% higher than ARSC has a similar share structure yet is NOT compliant with the SEC.  GOIG is trading at $.0075 with over 2.4 billion shares authorized.  My point is simple.  Share structure does not mean a stock won't run to $.01.  Investor interest is what ultimately dictates price action and I think interest will grow in the coming days and weeks.

1.272 Billion Shares of ARSC are accounted for as represented in some recent SEC documents. 

720,257,447 are held by Fife Trading 

262,879,116 are held by the CEO and 

289,352,948 are held by the President of ARSC 

These insider holdings reduce the amount of shares available in the market place and are also a good sign as far as insider opinion on the company.  They have been adding to their positions via open market purchases and as the ball gets rolling this could accelerate.


Today ARSC traded over 12% of its outstanding shares, a healthy trading session for this stock.  The last time ARSC saw this type of volume was one year ago when it traded from $.0003 to $.0025.  History has a habit of repeating itself, and while I think $.0025 is a lofty number, we know this stock has traded as high as $.0008 this year.  That would be a logical point of attraction and represents a 300% gain from today's close.   The stock just broke its 50 DMA.  This is a very bullish sign and the 200 DMA rests just over $.0003,  a break of that would open up that $.0008 figure.

Today's press release represents a great step forward and something the company has been trying to accomplish for well over a year.   I find it ironic that the company is finally starting to make positive strides yet the share price sits near all-time lows with very little volume prior to today's press release.  This confirms investors have forgotten about this stock while shareholders have sold their positions, making my impending rally prediction all the more feasible. 

You have a $.0002 stock that has just become compliant with the SEC announce a deal that has been over a year in the making, if that doesn't mark a turning point for this stock I don't know what else will.  This is a rare find at $.0002 and it is the reason I think this stock will begin to find its legs.

The potential for some serious gains is there, we've seen it before and we will see it again.  The great part about these triple zero stocks is that they don't require much capital to buy them and yet they can return 100's  of % in return, turning a few hundred dollars into several thousand in an instant.   I think the potential is here for a very nice return going forward.

ARSC represents a very compelling opportunity.  It is a stock left for dead that is now coming back to life and it should be interesting to watch it trade.  This might be a case of where purchasing a few lotto tickets pays off in a big way.





American Security Resources Corporation (Pink Sheets: ARSC) announced today that it has accepted a proposal from a European Investors Group to fund and spin-off Hydra Fuel Cell to ARSC shareholders

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Bob Farr, President and COO of ARSC, stated “This group calls for providing a public vehicle to merge with Hydra. The group would then organize the funding so as to complete Hydra’s business plan. We will prepare a proxy for ARSC shareholders when the proposed transaction is complete that will fix the dividend

ratio and date. The Group has indicated they could have the transaction finished by late summer or early fall 2010. We have been working to achieve this since last spring and it looks like we finally have the right plan for our shareholders and Hydra,” concluded Farr.
American Security Resources Corporation