In last trading session, the stock price of Cardinal Resources Inc (OTCMKTS:CDNL) jumped more than 20% to close the day at $0.0169. The gains came at a share volume of 35.14 million compared to average share volume of 16.39 million. After the recent gains, the market cap of CDNL surged to $3.65 million.
A couple of weeks ago, Cardinal reported that it has got some fresh funds. The stock has recorded some impressive jumps and a few hurdles since then. Though the process the company used to acquire the $7.5 million funds is debatable, the amount itself will work well to re-invigorate the firm, and that looks a big probability.
Regrettably, this is where things looks bad because Cardinal Resources still hasn’t bothered submitting its yearly report that it already “delayed” for over a month. This being the case, there is no information explain what is going on with the firm, and in absence of that the market cannot estimate its progress, particularly based on older reports.
As per the last issued report, Cardinal Resources reported cash and cash equivalents of $25,000. The current assets came at 316,000 while current liabilities amounted to $3.3 million. It reported that the sales in quarter was $60,000 and net loss amounted to $851,000. The company has recorded staggering sum of toxic debt since the last quarterly report. The up move in the stock that the market has witnessed in last few weeks has not come up on solid ground.
Note well that it is not to indicate that there is no way for investors to still earn profits out of Cardinal Resources stock even if it starts moving south on the chart. However, enterprising investors trying to follow this process should only move forward with the knowledge that the company is yet to release its financial report.