Georgi Kamburov

China Logistics Group, Inc. (OTCMKTS:CHLO) Slides Down Despite Favorable Financial Results

by Georgi Kamburov May 22, 2013
5CHLOchart.pngIn a surprising turn of events China Logistics Group, Inc (OTCMKTS:CHLO) crashed hard losing 42% percent of its value to close at $0.029. Traded volume continued to be quite high reaching 8 million shares. This put an end to the remarkable upward trend that began during the two previous sessions when the stock skyrocketed by 92% and 61%, respectively.

Apparently most investors decided to cash in at this point and shed their holdings disregarding the underlying business of the company. CHLO is a freight forwarder with China as its main base of operations. Yesterday the company filed their 10-Q report for the period ending March 31 so let's take a look:

 

  • $2.3 million cash
  • $3.8 million total current assets
  • $3.8 million total current liabilities
  • $3 million revenues
  • $185 thousand net income

 

CHLO has a positive balance sheet, something that can't be said for the majority of the other penny stock companies. But when the numbers are compared to those from the first quarter of 2012 they reveal quite a different picture - 36% decrease in revenues and $0.4 million less in net income. And as we previously warned you the company's stock may be diluted by 59% if all the issued warrants and convertible notes are exercised.

6BYRGchart.pngThe last pump for CHLO is back from February when LiquidPennies touted it to high heavens resulting in an jump of more than 1500% in a single day going up to 0.14 as an intraday high. A more recent pump by the newsletter is that for Buyer Group International, Inc. (OTCMKTS:BYRG, BYRG message board) for which they disclosed receiving $10 000 as compensation.

CHLO are relatively underpriced so a bounce can happen due to the inherent volatility of the pennystocks. Even though the business of the company is stable doing your own research should always precede any investment.

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