Cardinal Resources Inc. (OTCMKTS:CDNL)’s Jump Continues

Cardinal Resources Inc. (OTCMKTS:CDNL) added another 54.93% to its market value yesterday, once more jumping above the penny mark as part of its ongoing surge.

There could be little doubt that this continued jump was made possible by the 8-K announcement that the company has actually received the first trache of funding from the Chinese company Hangzhou Sky Valley Water Technology Co., Ltd. This means that CDNL now has $3.75 MILLION worth of funds, which it could use to make another attempt at becoming a commercially successful entity.

That is certainly good news – but is it good enough to justify the ticker’s rapid ascent? After all, having cash on hand is all good and well, but it is just a stepping stone that may allow for competent, enterprising and industrious company management teams to make an attempt to capitalize on a market.

CDNL‘s own management doesn’t seem to have done anything to suggest that it has any of those qualities. The company’s hasn’t even bothered filing its 10-K for the fiscal 2015! That fact alone speaks enough about its nature and its management team.

And so do the numbers that can be found in its rather outdated 10-Q for Q3 2015:

• Cash and cash equivalents – $25 thousand
• Current Assets – 316 thousand
• Current Liabilities – $3.3 million
• Quarterly Sales – $60 thousand
• Quarterly Net loss – $851 thousand

So to recap – we know that CDNL finally got its hands on some cash. But we don’t know anything else about its current state. We only know that it was a wreck seven months ago – and that there is no good reason to believe that it is in better shape now.

Will the cash infusion help it break out of the vicious circle of failure and loss? Only time will tell, but investors would do well to be wary of CDNL in the meantime.