Cardinal Resources Inc (OTCMKTS:CDNL) suffered extremely at the start of this year and eroded a large part of its market value on heavy volume. There was an obvious reason for this decline in price, supported with a considerable jump in volumes.
Cardinal Resources submitted its financial report 3Q2015 and market reacted accordingly. The numbers that were available in the balance sheet of released report looked extremely dismal, even by OTC standards. As per the released report, the company posted cash of $25,000. The current assets amounted to $316,000 while current liabilities came at $3.3 million. Cardinal Resources reported quarterly sales of $60,000 on net loss of $851,000.
The red flags
The firm’s management has not been keen on issuing the financial report for FY2015, which has earned Cardinal Resources the OTC markets Pink Limited Information status and the red warning sign on profile. There is a certain lack of PRs coming from Cardinal Resources headquarter lately. Still, the company’s stock has been moving north on the chart for almost a month now.
The reason for this up move is the recently submitted 8-K report that reported the company has bought $3.75 million in funds from Hangzhou Sky Valley Water Technology Co. Last Friday, the stock jumped more than 11% and closed the week at $0.01147, while over 10 million shares changed hands. The daily dollar volume before the weekend surged to more than $100,000. The lack of news is troubling, which again may prompt CDNL stock to correct. Cardinal Resources has yet to submit its 10-K report, and this delay is also not having any impact on the stock price.
In last trading session, the stock price of Cardinal Resources jumped more than 30% to close the day at $0.0150. The gains came at a share volume of 31.66 million compared to average share volume of 15.42 million.