This month, CAVU Resources Inc. (PINK:CAVR
, CAVR message board
) announced another acquisition of new wells and a million dollar revenue for the first two quarters of the year. Within the several trading sessions between the two announcements, CAVR share price even marked a new yearly high.
Although yesterday's session brought a sharp decline for CAVR stock, it cannot be said that the stock is resistant to positive news and promotions. Yesterday CAVR closed the market at $0.039, the share price falling down by 20.41% from the previous close on a trading volume of 2.29 million shares.
Also yesterday, the company issued its latest press release, but the information in it cannot be considered reliable since the company is not filing with the SEC and it holds the warning "No Information" shield on the OTC Markets homepage.
Saying that its gross revenue reached approximately $3.1 million for the first and second quarters of 2011, yesterday CAVU Resources attempted once again to convince the market that it is cutting down its losses and is pursuing new acquisitions to increase its cash flow and sustain "this rapid growth period".
The attempt was not that successful though, as the share price fell through the $0.035 support and looks like it could be falling today as well. Yet, CAVR had already delivered huge gains in the preceding sessions, and the subsequent fall does not really surprise.
In the middle of last week, the company announced an agreement to purchase a 100 acre and 25 well lease in Nowata County for $290,000 in cash and $10,000 in stock, whereby the plan was to bring some old wells back into production by utilizing a new technology. Principally, that sounds like a good idea, yet due to the lack of any reliable filings it is very questionable what potential the deal could hold, even if it actually takes place.
Moreover, CAVR recent new 52-week high has been accompanied by a promotion as well. Our database shows a promotional e-mail for the stock has been sent on Tuesday, which cost to a third party $10,000 in cash.