CD International Enterprises Inc (OTCMKTS:CDII) Gets Ahead of Itself
The OTC Markets are a place of many wonders. Yesterday’s chart movement of CD International Enterprises Inc (OTCMKTS:CDII) was one such wonder. The stock shot up to an intra-day high of $0.07 per share, rising over 5000% from its previous close. By the end of the session CDII stopped 2250% up, at $0.03 per share.
The company put up a press release near the opening bell yesterday morning, announcing a “purchase order” valued at about $350 million. CDII stated that the company’s subsidiary, Capital Resource Management Corporation, received the purchase order that includes 240,000 tons of copper concentrate, to be delivered over a period of 24 months. CDII “plans” to source the copper from Chile and Peru.
There is no official filing concerning the sizable order. The buyer is not named in the press release as well. This did not stop traders from gobbling up over 409 million CDII shares over the course of the session.
This leads to a rather important question – just how many outstanding common shares does CDII have? The company’s fiscal year ends in September, so the most current report available is the quarterly for the three months ended June, 2015. In it, CDII lists 85 million OS. A later Schedule 13-G informs that 7% of CDII‘s outstanding shares amounted to 6 million shares, still in line with the 85 million figure. The Schedule 13-G was posted on Sep 1.
It’s safe to assume that the company’s OS count has grown considerably, unless CDII entire outstanding share volume changed hands almost five times yesterday – a scenario that is more than unlikely. Due to the lack of any share structure info that is not over two months old, it’s impossible to tell what is really going on.
CDII‘s latest quarterly also includes the following balance sheet:
- $23 thousand in cash
- $7.2 million in current liabilities
- $74 thousand in quarterly revenues
- $2.0 million in net loss from continuing operations
Those figures speak volumes on their own. Combined with the share price slip from multiple cents to the bottom end of double-zero territory within the space of a month and a half, they don’t cast a particularly favorable light on CDII.
Investors should be able to figure out on their own whether a “purchase order” press release is enough to warrant any serious long-time attention and whether or not enough people will sell hard into the price spike tomorrow to drive the price back in the dirt.
CDII is currently stamped with the “Buyer beware” skull-and-crossbones sign on OTC Markets.
