Despite the numerous details which suggest that Centaurus Diamond Technologies, Inc. (OTC:CTDT) is hardly worth $40 million, the price has been moving up with the support of paid pumper newsletters.
Today we get yet another piece of information which casts a shadow of doubt on the bright future of this young enterprise.
According to the latest email from the pumpers touting CTDT stock, Goldman Small Cap Research has issued a report on CTDT. The target price given by Goldman is an overly optimistic $1.20 per share.
What’s wrong with that picture? Well, as we said last time, CTDT is not actually producing the famed diamonds they brag about in their press releases. The company still has to do more research and beta testing.
Looking at what CTDT has at the moment it’s hard to justify its current price and market cap, let alone $1.20 and respectively a market cap of approximately $136 million.
If anyone is new to the work of Goldman Small Cap Research, and happens to be impressed or in any way inspired by the report and the target price, they will do well to see what other “gems” they have glorified in the past.
One prime example is TLFX. On May 24 Goldman issued a report on the company giving its stock a target price of $1.75. As you can see on the chart, not only didn’t TLFX reach the target, the fact is, the target isn’t even visible on the vertical axis.
Similarly, on Apr. 27 Goldman gave LIGA a target price of $0.50 per share. One session after that the stock started losing value at an alarming rate.
Don’t the people at Goldman see that the companies in question are all being pumped by paid newsletters? Probably they do, however, Goldman Research happens to be paid for its reports too. In the case of CTDT, Winning Media LLC has paid $8 thousand for the report.
In the mean time CTDT hasn’t filed any documents after the 8-K regarding the name change, nor has it issued a press release after the one on Jul. 10. The current price is mostly supported by the ongoing pump efforts. Traders should be aware of the distinct possibility of a price correction. Do your due diligence and you should be able to make out what the direction could be.[BANNER]
