Gold & Silver Mining (OTCMKTS:CJTF) Plunges Back into Triple-Zero Land
About a year ago, Gold & Silver Mining (OTCMKTS:CJTF) hit a 52-week high of nearly $0.07 per share. Last week it finally found a bottom of just under $0.0002. That is a truly appalling performance, you have to agree, and we’ll now have a look at some of the potential reasons for it.
The first thing that could be pushing the ticker towards the bottom is CJTF‘s disastrous financial problems. Quite a lot of promises have been made over the years and quite a lot of people have jumped in because of those promises. All they got in return was a quarterly report that looked like this:
- cash: $56
- current assets: $190 thousand
- current liabilities: $1.3 million
- NO revenue since inception
- quarterly net loss: $74 thousand
These are not the figures that could support the ticker above the $0.01 per share barrier. Add to them significant dilution, and you’ve got a recipe for disaster.
Last year, when the stock was still hovering comfortably above the penny per share mark, CJTF printed a total of 85 million shares of common stock in order to satisfy about $132 thousand worth of convertible notes. In Q1, when the ticker was still holding its own to some extent, a further 47 million shares saw the light of day in order to extinguish $66 thousand worth of debt. In other words, the company issued quite a lot of stock at an average rate of less than $0.002 at a time when people were paying much more for it on the open market.
This alone can deter quite a lot of people away from the stock, but CJTF‘s management team seem determined to draw them back in with the help of numerous forward-looking press releases. You can open the News section at the company’s OTC profile, read through all the announcements, and decide for yourself how realistic the promises made in them really are. The one thing that we can say about them is that they almost sound too good to be true, and, as we’ve established numerous times on these pages, this is not such a great thing in Pennyland.
Nevertheless, there are people who still reckon that CJTF is “a life changer”. These people have been pretty active on the message boards recently and thanks to them, the ticker reached a close of $0.001 per share on July 1. Unfortunately, on the very next day, CJTF plummeted back down and it lost 40% of its value which means that it’s about to start the new week with a price of $0.0006.
CJTF also experienced higher than average volumes over the two turbulent sessions, so, naturally enough, there are quite a lot of investors who are now wondering what’s going on. Some are guessing that this is nothing more than a consolidation which will solidify the future performance even further. Others are not quite as convinced. They reckon that Thursday’s drop happened because of the company’s appalling performance and because of the history of broken promises.
Once again, you should be the one to decide whether this really is a simple consolidation or whether it’s a sign of something more sinister to come. If we have to comment on Thursday’s drop, however, we would simply say that we’re not exactly shocked.
