Codima, Inc. (PINK:CDMA) hit a heavy trade in the last two days of last week. On Thursday, the trading volume reached 540 million shares and 300 million on Friday, which is several times higher than the daily average for the company.
CDMA, whose stock suffered a detrimental devaluation two months ago, hit the ultimate bottom in September when the last quarterly report was published.
The report was published on the OTC Disclosure and News Service on Sept 16. The report was full of discouraging ratios, such as:
- Working capital deficit of over $6 million.
- The company has a book value of $400 thousand, while claiming to have more than $9 million in intangible assets.
- $685 thousand net loss.
Yet, the company claims it has adequate resources to continue its operations. CDMA explains its hopes with the fact that the former stockholders of the company continue to support it.
However, no market support was visible when CDMA stock plunged down to the bottom after the report was published.
In addition, last week the company had increased its outstanding shares by a 1.1 for 1 stock split. Unfortunately, so far no press release has been issued to explain the reason behind this manoeuvre. And official explanation is hardly likely to appear since the company proudly wears a red stop sign on the OTC Market reflecting its limited information status.
