Cardinal Resources Inc (OTCBB:CDNL) Gets a New Pump
Cardinal Resources Inc (OTCBB:CDNL) shifted many times its average volume in yesterday’s session, propelled by a paid pump. The promotion came right along with an official company press release and the combination of the two was obviously enough to send the ticker nearly 18% up the charts. By the closing bell CDNL stopped at $0.0395 per share on volume of over 6 million shares traded.
The previous time CDNL moved a comparable amount of shares in a single session was back in late July, when, not too surprisingly, the ticker was being pumped again. The June pump disclosed minimal cash compensation and a total of 350,000 restricted shares paid to Larry Isen’s OTC Journal to advertise the company. A quick minute with Google shows that Mr. Isen has a track record of SEC run-ins.
CDNL crashed immediately after the one-day volume spike and just as it was approaching its price levels before the June pump, it seems paying party MarketByte LLC decided it was time to play the promo game again.
The new pump is focused on the company’s last PR, informing CDNL landed a U.S. contract for a change. The contracted installation for an Arizona mining company should be done sometime in late 2015 or early 2016. The promoter is once again Isen’s OTC Journal, disclosing the same compensation as before – $2500 in cash and 350,000 restricted shares.
Here is what CDNL published as of its last quarterly report for the three months ended March 2015:
- $147 thousand in cash
- $2.3 million in current liabilities
- $84 thousand in quarterly sales
- $814 thousand in quarterly net loss
Considering the fact that CDNL deflated pretty quickly the previous times OTC Journal pumped it and it crashed horribly in early 2015, again assisted by paid pumps on the way down, investors would do well to do their own due diligence and be extra careful with this one.