Terra Nova Financial Group Inc. (OTC:TNFG) traded very intensively during Wednesday’s trading session with the historical board decisions coming into action. There was no price reaction to the intensive volume.One of the possible reasons for the unusual activity could be the upcoming dissolution distribution payments that were promised to take place on November 18, 2010. The announcement made on the 2nd of November stated that the Board of Directors approved payments of $0.72 per common share to the shareholders. November 10, 2010 was fixed as the record date for determining the shareholders entitled to participate.[BANNER]
The company recently published their quarterly results, which likely added some recognition as well. The highlights were contradictory:
• Revenues decreased by nearly 42% to $3.9 million, compared to $6.8 million over the same quarter in 2009
• The would be loss was offset by a income tax benefit of over $5 million
• Cash position increased by $5.7 million according to the cash flow statement
• Overall assets decreased in value, but so did liabilities
The company’s shares are rather illiquid and despite the theoretical uptrend that can be drawn on the chart, the price behavior is erratic and moves are volatile, posing excessive risks to the shareholders.
