China Logistics Group, Inc. (OTCMKTS:CHLO) Shoots Up
During Friday’s session China Logistics Group, Inc (OTMKTS:CHLO) made an amazing run. The stock was on fire reaching an intraday high of $0.035 and closing at $0.031 – a more than 92% gain compared to the previous close. Traded volume also exploded with 6.3 million shares changing owners.
The company is a freight forwarder operating in China. With no discernible paid promotion and CHLO‘s refusal to use fluff PR announcements, the reason behind the surge must be located in the annual report they filed last week. And for a pennystock company they reported some impressive results:
- $2.4 million cash
- $4.1 million total current assets
- $4.4 million total liabilities
- $24 million revenue
- $800 thousand net loss
Despite the significant amount of income the company couldn’t maintain a positive bottom line and it has an accumulated deficit of $20 million. Considerable concern for investors should raise the possible dilution of the stock by approximately 59% if the issued warrants and convertible notes are
CHLO are likely to continue their uprise when they release their financials for the first quarter of 2013. Some news regarding the warehouse facility they planned to establish back in February should also boost confidence in the stock.
Currently the company isn’t being touted but that wasn’t the case just a few months earlier. In January the full-blown promotion spearheaded by Liquid Pennies managed to elevate the ticker by more than 1500% percent in a single day. When the emails stopped the stock quickly crashed and has lost more than 70% of its value since then.
Liquid Pennies have a long history of failed promotions some even crashing hard on the same day they began. This is exactly what happened with Brookfield Resources, Inc. (OTCMKTS:BFLD) on February 26. Liquid Pennies were even forced to send a letter of apology to their subscribers calling what transpired a bloodbath, which didn’t stop them from bagging the hefty compensation of $400 000.
CHLO have a stable business operations and are generating quite sizeable sums. Even so doing your own due diligence is required due to their past involvement with paid pumps.