Penny Stock Geek Gives a Cheap Try on Cardiff Intl Inc (OTC:CDIF)
It only takes a small group of people to make a small fortune. If you see what the stock of Cardiff Intl Inc (OTC:CDIF) did yesterday thanks to a minute pump effort, you will definitely know what we mean.
Having been touted by a handful of promoters, CDIF almost trippled in value as it gained a whopping 193% during the latest trading session. More than 10.4 million shares of common CDIF stock changed hands that day, setting an all-time record.
At first sight, we thought that promoters Penny Stock Geek and Explosive OTC (just to name but a few) must have got a fairly hefty compensation to trigger such a massive response by investors. Ironically enough, their disclaimers contain no remuneration details whatsoever, which is highly atypical of either promoter. According to their historical records, both promoters have been compensated for the vast majority of promotional campaigns they have been in charge of. Of course, this exception poses less risk to investors. Rather, getting a stake in CDIF is quite a hazardous undertaking and we will just tell you why in the next lines.
If you read Penny Stock Geek’s touting email on CDIF, you will most probably be impressed with Cardiff International’s “Mission Tuition” platform. As it is, the latter gives online shoppers the opportunity to get back a small percentage of each purchase into a special educational savings account, which would, in the long term, grow big enough to fund a college education. Intentions good, no doubt about that. Yet, the are two major obstacles that must be overcome in the first place.
On the one hand, Cardiff does seem to have contracted a vast network of online retailers. However, the cash back rate offered by 99% of all retailers rarely reaches 5%. Even if we assume that you would get 5% back on each and every purchase you make, you would need to spend a total of $100 thousand to save $5,000 for college. Still better than nothing, but if you had $100 thousand at hand, you would not bother using CDIF‘s platform, would you? Obviously, this is exactly the case because, on the other hand, the company has not generated a dime in revenue out of its Mission Tuition service even though the latter has been available since the fourth quarter of 2011. In other words, this means that CDIF has not earned any:
- commissions from merchants
- interest on savings accounts
- fees and or commissions deriving from credit card activations and transactions.
The facts mentioned above provides little room for excitement. In this respect, it is no wonder that CDIF‘s current financial state is in dire straits, to say the least. With a working capital gap exceeding $5 million, zero revenue for the last two quarters on record, as well as a cumulative deficit (since inception) of more than $14.6 million, Cardiff International Inc does not exactly look poised for sustainable growth on the charts.
If this were not enough, let us examine Penny Stock Geek’s historical pump jobs to see if any of them had a long-lasting effect on the corresponding stocks:
- New Western Energy Corp (OTC:NWTR) – promoted on Jan. 7, NWTR shares halved their market value in just two days and have so far failed to regain their pre-promo position above $1.00;
Earth Dragon Resources Inc (PINK:EARH) – pumped on Dec. 17 against $35 thousand, the stock wiped out 70% of its market value in less than two weeks following the promotion. As you might guess, EARH has not recovered in full yet, either.- Geo Vision Internato (PINK:GVIT) – touted on Jan. 22 for $35 thousand, GVIT shares enjoyed a comfortable 67% first-day gain, only to lose an identically big chunk of their market value within a couple of days.
In the light of the dismal failures mentioned above, what fate do you think CDIF will be facing over the course of the next couple of sessions?
