Martin Tsvetkov

Kodiak Energy Inc. (OTC:KDKN): Silence Policy Leads to Disappointing Market Performance

by Martin Tsvetkov June 23, 2011
KDKN_chart.pngKodiak Energy Inc. (OTC:KDKN) lost 16% in value during the latest trading session. Was it a surprise? Hardly, especially considering the lack of recent company-related news.

Clocking in at $0.10 per share, KDKN stock brought two positive (and one neutral) price performances to an abrupt end. Thus, its mid-June surge has now been completely eradicated. In terms of volume, however, the situation was fairly different. With more than 1.5 million shares changing hands, KDKN set a new 22-week volume record, which is also head and shoulders above the average daily trading volume.

KDKN_logo.pngSeen from a PR perspective, KDKN has foreborne from issuing any official news for quite a while now. Nor has KDKN stock fallen victim to any paid pump-and-dump schemes. As it seems, in the best-case scenario the company has decided not to make a fuss of its current operations.

Being an oil and gas company, Kodiak Energy Inc. specializes in developing and exploring Canadian and US-based natural resource properties. As an OTCQB member, KDKN is a diligent SEC filer. Five weeks ago, it submitted its latest 10-Q report encompassing the quarterly period ended Mar. 31, 2011. As of that date, KDKN reported:
  • $76K in cash and short-term deposits as opposed to $19K for the previous quarter;
  • $1.07 million in current assets vs. $0.75 million for Q4 of 2010;
  • $7.8 million in current liabilities in comparison with $5.6 million incurred in the preceding quarterly period;
  • $0.72 million in revenue generated in Q1, 2011, i.e the same as the income accumulated by Dec. 31, 2010;
  • net loss in excess of $1.97 million vs. $4.6 million for Q$ of 2010.
The fairly controversial financial health of KDKN raises serious doubts about the company's ability to continue operating as a going concern. Nevertheless, it still stands a chance of striking oil. The only question is: When?

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