Cardinal Resources Inc. (OTCBB:CDNL) Jumps On PR
Cardinal Resources Inc. (OTCBB:CDNL) managed to add 42.59% to its market value yesterday, and interestingly enough, this time the climb was not caused by a paid pump.
As we’ve discussed on occasion before, CDNL has been the target of a multitude of paid pumps over the last few months. The fact that the compensation for the last one was “ $2,500 and 350000 restricted trading shares” should be indicative enough of CDNL‘s dubious nature.
In spite of this, the boastful proclamation that the company will be moving forward with its plans for the Red Bird contract made quite a splash.
True enough – making $29 million worth of revenue is a big deal for a company as small as CDNL, as it could be the thing that propels it into profit land.
However, investors would do well to note CDNLis to start work on the Red Bird in Q3 of 2015. There’s still a lot of time until that comes to pass. A lot of things could go wrong in that time, and since we’re talking about a pinksheets OTC Markets company with so many paid pump, it would probably be a safe bet that something will.
This is why CDNL‘s press release should probably have been taken with a pinch of salt. After all, as boastful as it and the pumps targeting the company may have been, at the end of the day, due diligence on CDNL yields some very unimpressive numbers:
- cash – $147 thousand
- current assets – $236 thousand
- current liabilities – $2.37 million
- revenues – $84 thousand
- net loss – $814 thousand
The bottom line is that the Red Bird news may have attracted the investors’ attention, but until the project is actually rolling and starts showing results, all it will be able to do for CDNL is generate hype.
And we all know how hype jumps for pumped OTC Markets tickers end.
