27 Nov Superior Venture Corp (SVEN) – now playing at a broker near you
Back on September 11, 2012 we did a report on SVEN well ahead of other researchers found here. Special credit to Alive for his work on that report. In that report we mapped out the set-up and early history of the shell and pointed out some noteworthy connects between SVEN and APS posing the question about whether APS was lurking in the background of the shell.
Since that time we have been watching SVEN closely. We put SVEN near the top of our list of tickers to watch coming into this most recent APS promotion. Sure enough, today, APS made SVEN their last official monster pick of the month for 2012.
SVEN started the day at $.10/share before the first trade went off at about 9:50 a.m. SVEN quickly shot up to $.15/share then slowly climbed from there trading around the $.30/share mark for most of the day. With 126,648,533 shares traded mostly between $.25/share and $.31/share, over $35 million traded hands today.
Because we were already watching SVEN closely, the ticker was alerted in our chat room today right after the first trade was made and the first text alert was sent at 9:57 am - well ahead of any email alerts from APS or anybody else. SVEN had only traded 10,000 shares before today so there was little opportunity to front load the stock in anticipation of a future stock promotion, but because our team was well aware of SVEN before the volume started today, many of our members were able to jump in under $.20/share before the big buying frenzy ensued on the ticker.
Quick Summary from our Initial SVEN report
SVEN went public with a forward looking business plan to sell wine. The company was based in Colorado which is where alleged APS insider Aaron Lamkin is located. Aaron Lamkin is a long time wine enthusiast that even married into a prolific wine family. Lamkin was the CEO of Tapside Inc (TSLI) which was also involved in the wine industry and Paper Free Medical (PFMS) which was run by Lamkin's college buddy Matt Diehl (now involved with SWVI).
We saw the wine theme used with other APS plays like GWBU. Peter Evan Bell was planted into the GWBU shell to help set that one up for the future APS promotion. Before his short role as the GWBU CEO, Peter Evan Bell was delivering wine.
SVEN had a very basic set up. Clifford J Hunt (SWVI, FTTN, SILV, PPWE, MNGA, SFRX) was the attorney used to take the shell public.
Peter Messineo was chosen as the CPA (too many p&d tickers to list including SWVI, TSLI, AMWI, ICPA, FTTN, PWEI).
Michael Moore (who was working as a manager at a local Colorado restaurant called 730 South Bar & Grill before being recruited into the P&D game) was chosen to act as the nominee CEO to help take the shell public before eventually having it turned over to a more credible business for the future paid promotion.
Michael Moore was given 10,000,000 shares. After the S-1 filing was approved, between May 1, 2011 and July 31, 2011, 4,510,000 shares were sold to some anonymous seed shareholders for $.01/share.
SVEN never made any progress with its forward looking business plans and eventually ran out of cash. It was time to initiate the next phases for this future p&d shell.
On September 11, 2012, SVEN did a 35:1 forward split. This is what caught our attention and caused us to write our report about SVEN immediately putting it on our watch list for a future paid promotion.
That made the Share Count look as follows:
Outstanding Shares - 507,850,000
Michael Moore - 350,000,000 shares (restricted)
Anonymous Seed Shareholders - 157,850,000 shares (free trading)
In our initial SVEN report we also found links to Roland W Day (WBSI, SSBN, BIFC, and SOLS), Joseph Pittera (WBSI, CYSA, ENTB, VLCO, GUNP, TFER, BMSN, EWRL, AZNT, and others), and Harold Gewerter (AMWI, CMKX, CRWE, SEFE, GFCI, PUNK, TGRO, NGRC, and others).
So now that SVEN is now officially the new APS monster pick of the month, what has happened since our initial report and what do traders need to know about the ticker while APS is promoting the stock over the next 29 days?
Change of Control
Since our initial report, a change of control took place.
On November 1, 2012, Brian Hammond and Harry Sutherland acquired the 350,000,000 shares from nominee CEO, Michael Moore. Brian Hammond got 275,000,000 shares for $27,500 ($.0001/share) and Harry Sutherland got the other 75,000,000 shares for $7,500 ($.0001/share).
Brian Hammond and Harry Sutherland have both been involved in the film industry for the past several years. They started their own film company called Ilustrato Pictures Ltd in December of 2010. Ilustrato Pictures Ltd has plans to get involved in producing films in China.
8 days after taking over control of the SVEN shell, on November 9, 2012, Brian Hammond and Harry Sutherland merged their British Columbia registered UK based entity, Ilustrato Pictures Ltd, into the SVEN shell. All of the outstanding shares of Ilustrato Pictures Ltd (4 shares) where exchanged for 60,000,000 newly issued shares of SVEN stock. To make room under the 550,000,000 Authorized share cap, Brian Hammond first cancelled 175,000,000 of his shares in exchange for a $20,000 debt Note that accrues interest at 10%.
According to the share exchange agreement, those 60,000,000 shares were issued to Ilustrato Pictures Ltd in exchange for all the outstanding shares of Ilustrato Pictures Ltd stock which consisted of 4 shares issued between August 29, 2011 and April 30, 2012 for the total cost of $4.
Those 60,000,000 shares were split up as follows:
Brian Hammond - 15,000,000 shares
Harry Sutherland - 15,000,000 shares
Star Trend International Holdings Limited - 15,000,000 shares
Manantial Salino S.A. - 15,000,000 shares
Anonymous Foreign Business Entities
Star Trend International Holdings Limited is an anonymous Hong Kong based entity just created on October 3, 2012, obviously for the mere purpose of holding 15,000,000 SVEN shares going into the current APS promotion.
Manantial Salino S.A. is an anonymous Panamanian business entity that has been around since March 31, 2010. More information about Marantial Salino S.A. found here. The normal APS registration company from Panama, Gray & Co, wasn't used this time around. The registration company used this time was Quijanos & Asociados. I usually just assume that the officers listed at these Panamanian entities are just hired nominee officers used so that the real control people can remain anonymous, but I did notice at one of the links Bill Shui Wai Wan was listed as president of the entity, but at the other link he wasn't there. Why was he removed? It sounds like it could be a Chinese name, but there isn't much information available on the internet for that name.
I don't know about you, but when I hear Hong Kong and Panama I think of AwesomePennyStocks who largely operates out of Hong Kong and is notorious for setting up anonymous Panamanian entities to help launder their ill gotten gains out of the U.S.
We may never know for sure who controls Star Trend and Manantial Salino. All we know for sure is that those 2 entities are not controlled by Brian Hammond or Harry Sutherland or they would have had to disclose their ownership of those entities in the filings.
Star Trend International Holdings Limited and Manantial Salino S.A. got their share before April 30, 2012 and they paid only $1 each for that share. Now because of the share exchange they own 15,000,000 shares of SVEN each costing them only $1.
More on Illustrato Pictures Ltd
What did SVEN shareholders really get in exchange for their 60,000,000 shares that were issued to acquire Illustrato Pictures Ltd?
If you go by what Hammond and Sutherland want you to believe:
"Ilustrato Pictures Limited, has made partnerships, agreements, and plans with various Chinese movie production companies to fund and co-develop featured films in China.
The company intends to produce contemporary genre pictures in the $2-7 million dollar budget range. Management estimates that this budget projection in China is similar in quality and value to a $5-15 million dollar budget in Hollywood (labor savings in China account for the largest component of production value in this comparison)."
Hammond and Sutherland tout their past experience in the movie industry which includes several visits to China over the past decade as their biggest asset towards developing future partnerships in China. They call the Chinese movie industry "unable to generate proper script development due to lack of experience" and believe that gives them a unique opportunity to be successful in that country.
If you go by what the financial filings tell us:
Ilustrato Pictures Ltd is a company with only $43 cash and $0 in revenues in its history. To go with those minute resources, Ilustrato Pictures Ltd has accrued $867,362 in liabilities including over $550,000 in debts and $313,000 in accrued expenses. See their latest financial statement for more details.
The fact is that Ilustrato Pictures Ltd is just a developmental stage company with no real business operations to date.
Since SVEN had almost no cash and no real business operations of their own prior to the acquisition, the prospects for future success sure do have to be questioned.
What is really going on?
It is hard to look at all the facts combined with SVEN now becoming the latest monster pick by APS and consider SVEN to be a legitimate company. The evidence points to SVEN being operated as an insider enrichment scheme set up for an APS promotion from day one.
There is a chance that Brian Hammond and Harry Sutherland really did get involved with SVEN thinking that they were buying a clean shell for next to nothing giving them the opportunity to raise the capital needed to make their new film venture a success. If that is the case then I have to wonder why they would be involved in having 15,000,000 shares transferred to an anonymous Hong Kong entity and 15,000,000 shares transferred to an anonymous Panamanian entity.
APS jumped on SVEN within days of Hammond and Sutherland showing up on the scene. They had been teasing their next pick since the beginning of the month even before the 8K was filed for the SVEN change of control.
If we start seeing regular press releases being issued by Brian Hammond and Harry Sutherland to help support the paid promotion, I think that will put to rest any doubt about whether they are just pawns in a multimillion dollar stock manipulation scheme. The first press release came out just after the close today.
Current Share Structure
Authorized - 550,000,000 shares
Outstanding - 392,850,000 shares
Market Value - $123,747,750 as of today's close
Brian Hammond - 115,000,000 shares (restricted) costing $27,500 ($.00024/share) now worth $36,225,000 as of today's close
Harry Sutherland - 90,000,000 shares (restricted) costing $7,500 ($.00008/share) now worth $28,350,000 as of today's close
Anonymous Hong Kong Entity - 15,000,000 shares (???) costing $1 now worth $4,725,000 as of today's close
Anonymous Panamanian Entity - 15,000,000 shares (???) costing $1 now worth $4,725,000 as of today's close
Anonymous Seed Shareholders - 157,850,000 shares (free trading) costing $45,100 ($.00028/share) now worth $49,722,750
A $123,747,750 market value for a company with only a few hundred dollars cash and no real business operations to date seems a little over valued, but obviously the SVEN share price isn't driven by the balance sheet. It is driven by the promoters.
No surprise that APS has already started name dropping Chinese movie stars in their pump emails. This is a segment from their latest email:
They should have given this IHUB poster credit for giving them that idea.
Feeling out the next 29 days
I would never even try to predict the success of the promotion. All we know for sure at this point is that APS has put the pick on their banner which normally means bid support for 30 days before they pull their support and the stock price crashes down eventually falling in value more than 99% from its peak.
We know that there are some where between 157,850,000 and 187,850,000 shares which could potentially get dumped during this paid promotion. I personally believe that AwesomePennyStocks has some level of control over all of those shares and so the success of this promotion will be determined by how well they space out the dumping of those shares over the next 29 days and how much effort they put into supporting the bid price. That is a heck of a lot of shares that could be getting dumped, but as today's volume showed, APS is still a promotional company capable of bringing in hundreds of millions in share volume to support the selling.
As always, investors that do like the risk and thrill of trading penny stocks and don't mind supporting these types of stock manipulation schemes because of the potential to make money should consider the slight chance that this APS pick might finally be the one that the SEC decides to shut down before the promotion is over. Trade at your own risk and don't be greedy. Understand what you are getting involved in and trade accordingly.