Cerro Dorado Inc (PINK:CDCH) soared 34% to $0.187 yesterday on a higher than the 30-day average volume. The number of traded shares reached 1.4 million, which accentuated the stock appreciation, signaling for a possible momentum play.
The volume of CDCH was not produced by a promotion, but rather by a shareholder update which was published yesterday on the website of the company. The company announced that a tranche of funds, which was necessary to complete the joint venture agreement, was in the last stage of transfer to the company’s bank account. CDCH emphasized that: “until we have verified funds in place, the Joint Venture Agreement is not fully consummated.”[BANNER]
Retrospectively, the company had stated in a press release from December 2010 that the JVA would be closed on or before Jan. 15, 2011. Obviously, more than two months have passed since the deadline and the deal is still not finished. At the time of the announcement the stock had already conquered a price range above $0.2 per share. However, at present the value CDCH shares has plummeted down significantly, most likely due to the company’s inability to honor it’s word.
So far, CDCH along with its sister company Medina Minerals, haven’t made any effort to become more overt by trying to file at least one official document with the OTC Markets, let alone with the SEC. This factor is heavily tilting the balance of CDCH stock towards risk and speculation. Therefore, at present the risk tolerant investors will have to rely only on the company’s website updates for guidance in the land of CDCH’s stock.
