Yesterday, the stock of Continental Res Group Inc (OTC:CRGC) gained a staggering 30% in value, rallying to $0.35 per share. The volume also marked a significant improvement as compared to the day before with 704 thousand shares changing hands. The latter turned out to be the second highest figure for the last six months, after the turnover of 1.7 million generated on Sep. 14. It also accounted for a seven-fold increase in comparison to the 30-day average trading volume.
Newswise, the metal mining company has not been very productive recently. The last time an official press release saw the light of day was on Aug. 2 informing investors that CRGC’s recently acquired Sagebrush Gold, Ltd. (OTCBB: SAGE) had started drilling on its Red Rock property.
Financialwise, CRGC has been much more diligent and regular. Being a registered SEC filer, the company duly presented a full-on quarterly report for the period ended Jun. 30, 2011 last month. According to the 10-Q form, CRGC’s balance sheet contained the following figures among others:
- cash reserves in excess of $13 million;
- $15.7 million in assets vs. $0.25 million in liabilities;
- zero revenue and a quarterly net loss of $2.6 million.
Altogether, CRGC’s financial state appears to be fairly stable. At this stage, the only risk ahead of CRGC supporters might be dilution since only 47% of the 200 million shares of AS have been issued so far. Considering the company’s working capital surplus, which is big enough to cover a couple of quarters, however, issuance of new stock seems highly unlikely, at least at this point.
