Canaco Resources Inc. (CVE:CAN) (PINK:CANWF) continued to slide lower today as the stock fails to find a reliable technical support. The situation could continue deteriorate as there are few positive stimuli.
CAN stock price collapsed more than 10% shortly after the opening bell when traders went into a morning panic. Consequently it hit a new 52-week low and now only has technical support from a couple years back, which likely won’t do much in this bearish situation. The stock has now declined more than 82% over the past year.
Canaco had no official news since February 29, when they issued a quarterly report. Results showed a $5 million decrease in shareholder’s equity over a half a year period. The quarterly net loss was $1.9 million, similar to that recorded a year ago, when share based compensation is ignored. Canaco also put $24.3 million in short term investments, over the last quarter, redirecting the unused capital.
There were no major changes to the bad side – the constant losses should already be accepted by the market. The stock could decline more until the market cap equals the book value. That would allow for another 19.3% drop in market value, or around 82 cents per share.
