its traded volume exceeded the shocking 346 million shares.Apparently, the huge gain happened after an open letter for participation in the Greenfield Partnership Program was released last Thursday. According to the announcement, the Greenfield program included China Crescent Enterprises, Inc. and it was launched more than a year ago to support entrepreneurial and high growth companies.
A day after publishing the news, CCTR grabbed the gain and broke the negative price changes from the previous days. The new high trade, however, was accompanied by a massive discussion on investorshub.com message board, stating that another big press release is coming up this week and the stock would jump even higher. Though, it is yet too soon for any further predictions.[BANNER]
China Crescent Enterprises, Inc. is a systems integration company that offers technology outsourcing services. Last year, the company traded much higher, though since then the stock price has moved down. This year, CCTR has been frequently releasing positive announcements on its business, trying to support its stock price. However, the gain didn’t come until last Friday.
According to its quarterly report, as of end-September 2010 China Enterprises has registered more assets than liabilities on its balance sheet and its revenues have increased, but the management claims that the operations are not sufficient to fund the company’s capital requirements. By now, CCTR has funded its working capital requirements principally through borrowings under bank lines of credit, term loans, and issuances of common stock in exchange for debt. The team states it may enter into additional revolving loan agreements with a financial institution, or attempt to raise additional capital. Thus the financing cannot be guaranteed and the ownership interest of the existing stockholders can be diluted.
