Calissio Resources Group Inc (OTCMKTS:CRGP) Refuses To Move Up
Last Wednesday the stock of Calissio Resources Group Inc (OTCMKTS:CRGP) got destroyed as it wiped over 56% of its value and slid down to a close at $0.0023. Usually after such a painful drop a stock would bounce at least somewhat back up but CRGP failed to do so and on Thursday the stock closed flat at the exact same price. On Friday investors exchanged 92.2 million shares, volume nearly 9 times higher than the 30-day average, but despite the intense trading the ticker once again failed to move even and inch upwards closing flat at $0.0023 once again.
If you go further back the chart the performance of the stock only gets worse. During the first quarter of the year CRGP posted a high of 20 cents per share while back in October 2014 a reverse split brought them to $3 per share. If you bought in at the time and are still holding your shares you might have lost 99.9% of your investment.
If you open the latest financial report filed by CRGP, however, you might be left a bit puzzled. According to the quarterly report at the end of March the company had:
• $6.7 million cash
• $9 million current assets
• $909 thousand current liabilities
• $5 million revenues
• $2.1 million net income
That is right, CRGP not only have ample cash reserves and are generating million in revenues but they are actually a profitable entity. Furthermore the past couple of PRs have announced that a $1.5 million share repurchase program has been authorized as well as quarterly cash and stock dividends. The first cash dividend should take place on August 17. On July 24 CRGP announced the sale of their interest in the San Pedro Mine to Milagros Del Cobre Mineria S.A. de C.V for a total of $14,600,000, with $7,360,000 of the sum being payable in cash.
The multitude of impressive announcements, however, failed to have any lasting positive effect on the performance of the stock and there are several reasons that could explain why. Let’s start with the history of the company. Back in 2013 when CRGP operated under a different name and ticker they became one of the first picks of the pump outfit StockTips. In the aftermath of the promotion the stock got devastated but that doesn’t seem to stop the pumpers and since then CRGP has been touted by paid promotions on several occasions.
As we said earlier back in October, last year, CRGP implemented a 1-for-200 reverse split that reduced their outstanding shares from more than 571 million to less than 3 million. The dilution since then has been massive – as of March 31 there were 119 million outstanding shares while according to investors who claim to have contacted the Transfer Agent of the company as of July 30 Calissio had over 200 million outstanding shares. In our previous articles we warned you that the fact that CRPG have apparently increased their authorized shares from 300 million to 975 million could signal that the issuance of shares might continue.
Despite the impressive results from its operations CRGP remains a risky choice. The company has stated its intention to move to a national exchange in the next 9 months but in order to do so it will need to meet the minimum bid requirements, something that might not be easily achieved considering the performance of their stock so far.
