Net Savings Link Inc (OTC:CXLT) has been rising since Tuesday, when the company filed an 8-K report with the SEC. Apparently this was the event that triggered the bounce off of CXLT which surged up to a previous resistance at $0.29 over the course of three days.
On the last session, 2.4 million shares were traded which nearly eight times higher than the daily average. The stock price surged 11% to $0.295 after hitting an intraday high at $0.31. The information provided by FINRA indicates the short volume for the same day reached 1.1 million shares which is nearly 49% of the whole volume.
Maybe, the market was stirred by the company’s officially declaring through the 8-K that it was no longer a shell company as of March, 2011. However, it appears that investors have not been disturbed by the detrimental financial disclosure of CXLT which followed later in the report. [BANNER]
The 8-K revealed that as of May, 2011 CXLT had a working capital deficit of $1.8 million, while five month earlier it was $157 thousand. The cash flow report indicated that the company is losing money through its operating activities and is generating cash through issuance of convertible promissory notes.
CXLT has also disclosed the sincere opinion of their auditors: “they have substantial doubt that we will be able to continue as a going concern without further financing.” It appears,though, that the financial troubles of the company didn’t disturb investors when the report officially came out. Nevertheless, CXLT will inevitably feel the pressure of its financial plight on its stock value especially when the issued notes payable get converted into stock.
