Calissio Resources Group Inc. (OTCMKTS:CRGP) Flies Even higher
Calissio Resources Group Inc. (OTCMKTS:CRGP) once more doubled its market value on Friday, as investors rushed in to load the boat on the dirt cheap stock, unmindful of the dark clouds on the horizon.
True, the company seems to have made some pretty impressive steps forward of late. The financials found in the company’s latest quarterly report were certainly a welcome sight for CRGP enthusiasts:
- Cash – $8.6 million
- Total Current Assets – $10.4 million
- Total Current Liabilities – $909 thousand
- Total Mine & Mill Revenue – $8.9 million
- Net Income – $3.8 million
When said report hit the web, investors saw the figures and went nuts and the ticker has been surging up on massive volumes ever since – and this brings us to one huge red flag.
In a press release that came out on August 20, 2015 CRGP announced that the total number of shares of common stock repurchased under its buyback program to date is about 131 MILLION. About half a million dollars has been spent on the program, and if the company’s assurances are anything to go by, CRGP means to take further steps in that direction.
This is where the picture starts to get REALLY bleak. Perceptive investors would have also noticed that the report we discussed earlier did not give the number of shares CRGP had outstanding as of the date of its filing – rather, it shows that as of June 30, 2015 CRGP had about 130 MILLION shares of common stock. Friday saw 323 MILLION shares of commons stock change hands.
What all these numbers mean, is that between June 30 and August 20, the number of CRGP shares outstanding has grown so much from its initial 130 million to allow the company to retire 131 million and still have enough shares in circulation to achieve a daily trading volume of 323 MILLION. The amount of dilution this hints at is simply breathtaking.
Since we have no current information on the company’s share structure, the extent of the damage done by said dilution to investor value is still unknown. Investors would do well to consider that before they jump on the CRGP hype train.
