American Diversified Holdings Corp. (PINK:ADHC) – Acquire Cloud Computing Business

Before I begin to write anything about ADHC" href="http://www.google.com/finance?q=adhc">American Diversified Holdings Corp. ADHC, I'll warn that it's a high risk penny stock. To that I'll also add that there are quite a few things here that don't make much sense. Also, there isn't a whole lot of information that I could find about the company.

What did catch my attention though was the news of an acquisition. The company announced on Saturday that they had acquired a cloud computing business. The above chart shows a strong surge in trading volume on last Friday's trading session, so it's clear that some people knew in advance of the acquisition. In May, there was also a trading spike in the stock.

Those are all warning signals. To add to that, the announcement was also a bit funny. In bold they make the claim that they are entering a $160 Billion industry. That sort of bold statement deserves to be treated with a very hefty level of skepticism.

Also, there are no details on the terms or price being paid for the acquisition. Yet another signal that things might not be quite right here.

Moving onto the positives, the business that was acquired is rebelnetworks.com. I had a look at their alexa ranking and it was quite good. At the time of writing the ranking stood at 343,276. Their one month ranking was even better – sitting at 240,240. The fact that the one month ranking is lower than the three month ranking shows that currently, the website is getting an increased flow of internet traffic.

Strategic positioning and the move into cloud computing is another positive in my opinion. My understanding is that the company is currently attempting to develop an e-health business. The acquisition of the cloud computing business could deliver major synergies for their existing business development efforts.

American Diversified Holdings Corp. closed at 0.004c yesterday.

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