CD International Enterprises Inc (OTCMKTS:CDII) Drops Below $0.001

The stock of CD International Enterprises Inc (OTCMKTS:CDII) continued to be hammered during yesterday’s trading. After more than 186 million shares changed hands, the biggest volume seen by the ticker since December 2015, the stock found itself closing at $0.0008 for a loss of exactly 20%. During the session a new 52-low of $0.0007 was also registered.

Seeing the disastrous chart performance one would find it hard to believe that just a couple of months ago, in February, CDII actually announced receiving a purchase order with a potential value of $200 million. Back in December, last year, the company announced an even bigger purchase order for 10,000 tons of copper concentrate per month over a period of 2 years with a total value of approximately $350 million. It cannot be denied that these announcement had a tremendous effect on the share price but the massive gains proved to be extremely short-lived.

Now the stock is sitting at record lows and if you want a reason for it you won’t have to look far – just open the latest financial report. According to it CDII finished the quarter ended December 31, 2015, with the following financials:

• $150 thousand cash
• $184 thousand total current assets
• $17.4 million total current liabilities
• $34 thousand revenues
• $12.5 million net loss

Meanwhile the shareholders of the company have been put through a drowning amount of dilution – in the three months covered by the report CDII‘s outstanding shares increased from 100 million to 508 million. Since the start of 2016 the printing presses have barely slowed down – as of February 19 there were 637 million outstanding shares while 18 days later that number had moved above 700 million. The company freed up even more room for the future issuance of shares after it increased its authorized amount of common shares from 1 billion to 2.5 billion.

The voting control over CDII may have changed as a result of the share purchase agreement that was announced back in March but the risks surrounding the company remain just as serious. Plan your trades carefully and always do thorough research when dealing with a pennystock company.