Last week’s session of Cannon Exploration, Inc. (PINK:CNEX) was marked by a 18.18% drop in the stock price and a 206 million traded volume. On Thursday, CNEX.pk registered a spectacular activity, when 503 million of its shares changed their owners, compared to the average value of 62 million. It was then when the stock price started to slip down again after its price rose up by the impressive 52% within two consecutive days.
Just for the record, CNEX is a mineral and resource exploration company. It is primarily focused on exploring its Queen Alexandra gold property, which is situated in Ontario, Canada. The business had been halted in much of 2009, due to the lack of funding and recommenced operations in March 2010.
On Sept. 16 the company published an update on its Geology Assessment Report from June 2010 on its website. According to Mr. Edwin Solano, CEO of CNEX, the company is “very excited with the results from that program”. Apparently the excitement has spread among investors as stock prices pushed up by 29%. However, the agitation was short-lived as over the next two days the stock price returned to its previous level. Apparently the company needs a more credible proof of their future profitability to bring a stable rise to their stock prices. Until then, CNEX’s series of updates on their exploration activity may seem like thrashing over the old straw.
Little can be said about CNEX’s financial situation as no reports have been filed so far. The company will need additional funding to continue exploration. Alas, there is no official data confirming that CNEX has the cash on hand, which appears to be the reason why the CNEX stock price has plummeted since its peak in mid May.
