A newsletter promoting CAVU Resources Inc. (PINK:CAVR) and some traders see an opportunity for a short squeeze.
Last Friday, most of the volume was generated on a dip before the close, and some shorters probably managed to cover their positions. At the end CAVR closed at $0.039 – a 20.41% drop on 1.3 million shares.
The newsletter which talks about the squeeze happens to be the one that has been promoting CAVR throughout May.[BANNER]
The company is yet to file its quarterly report. Back on May 14 the company submitted a late filing notification, but now the 5 additional days are gone and there is still no word on the report.
The annual report didn’t paint a pretty picture, with CAVR having a negative working capital and reporting a loss from operations.
This didn’t stop the company from making a nice, generous gesture. Yesterday’s revenues were supposedly donated to the Red Cross for the city of Joplin, Missouri.
The company also announced on May 24 it had secured $10 million in funding from Kodiak Capital Group for the completion of acquisitions and current contracts. It was supposed to be a non-dilutive offering; however, there are some traders who see it the other way.
With the report still missing, CAVR has only the promotions and the potential for a squeeze working its way. We will have to wait to see how that will play out.
