CD international Enterprises Inc (OTCMKTS:CDII) Gets Demolished
In our previous article about CD International Enterprises Inc (OTCMKTS:CDII) we warned you that yesterday’s trading could be a disaster for the stock of the company. And it seems that we were right – all it took was just six and a half hours for the ticker to obliterate over 66% of its value. This meant that all of Friday’s 200% gain in share price was simply erased and CDII is now once again sitting just above the bottom of the chart at $0.0002. The devastating crash took place on a volume of nearly 350 million shares, the biggest daily volume registered by the company since December, last year.
You won’t have to look for long in order to find the reason for yesterday’s bloodbath. All you have to do is to open the Schedule 14C Information statement that was filed after the end of Friday’s session. It announced that CDII is going to perform a 1-for-200 reverse split at an undisclosed date next month. Due to the rampant dilution of the company’s common stock the number of outstanding shares ballooned from approximately 100 million at the start of 2015 to nearly 1.5 BILLION less than 17 months later. After the reverse split the O/S should be reduced to around 7.3 million shares.
Yesterday another disappointing filing came from the company. Instead of submitting their financial report for the first quarter of the year CDII filed a notification of late filing, which gave them a 5-day extension to complete the report. The previous quarterly report was far from encouraging – CDII finished the quarter ended December 31, 2015, with:
• $150 thousand cash
• $184 thousand total current assets
• $17.4 million total current liabilities
• $34 thousand revenues
• $12.5 million net loss
In the PR published on May 3 the management of CDII stated that deliveries under the two purchase order with a combined potential value of $550 million could begin in the coming months. Still, the red flags surrounding the company are far too serious to be underestimated. Plan your trades carefully and do thorough due diligence before committing to anything.
