Citadel EFT, Inc. (PINK:CDFT) Struggles to Contain Slide
The stock of Citadel EFT, Inc. (PINK:CDFT) has been in free fall mode over the last couple of weeks, slipping about 50% from where its upward run stopped. Yesterday volume was particularly hot, with over 14 million shares changing hands.
The stock has been charting a choppy graph even as it went down, with spikes piercing far below each closing price. The company’s situation is a very weird one, considering the company’s future plans for uplisting out of OTC and into Alternext. As per their latest quarterly report for the quarter ended December 2012, CDFT had the following numbers to show:
- $19 thousand in cash
- $73 thousand in current liabilities
- $94 thousand in quarterly revenues
- $296 thousand in quarterly net loss
The company’s fiscal year ends September and their last yearly report makes for a far scarier read. For the year ended September 2012, CDFT logged net loss of $1.8 million on revenues of just under half a million.
Traders may also find it worth mentioning that as per the abovementioned quarterly report CDFT purchased “sports memorabilia” by issuing 4,000,000 preferred shares, recording the same memorabilia as “Other assets” worth $2.9 million. The market value of the shares issued was determined to be $0.74 per share and was reached by “using a xxx model” (sic), as the filing states, whatever that may mean.
CDFT seems to also love settling debt by issuing common stock and diluting retail shareholders. For the quarter ended December alone the company issued 58,000,000 common shares to settle liabilities. The announcement that CEO DeRoos intends to retire 70% of his common shares after the next quarterly financial report is filed seemed to do very little to improve investor confidence as the stock kept slipping.
Traders are advised to be extra careful when investing in any stock, especially OTC penny stocks that can easily swing wildly in both directions.
