Dragni Dragnev

Cabo Verde Capital Inc. (OTCMKTS:CAPV) Soars Even Nigher

by Dragni Dragnev November 24, 2015

Cabo Verde Capital Inc. (OTCMKTS:CAPV, CAPV message board) nearly tripled its market value after a session of rabid buying yesterday – but how long can it keep that up?

As awkward as that might sound, unusual blast-offs aren't all that unusual on the OTC Markets. Strange and confusing things happen in Pennyland all the time – but that doesn't necessarily mean that they will last.

CAPV's current ascent seems just like one such occurrence. There seems to be no obvious cause behind it, and even though the company's supporters are now hyping about the announcements in its latest 8-K, the news of CAPV's reincorporation did not really make a splash when they came out.

Add the fact that there are no other announcements, and that CAPV hasn't issued a press release in more than a month and a half. Further, the only really recent development in the company's newsfeed is a pump by Blue Horseshoe Stocks, which only came in on Friday, so it's safe to assume that it couldn't have been responsible for the initial spark of investor enthusiasm that exploded into a wave of buying.

Long story short – there doesn't seem to be anything substantial causing this rise. As we said – that's not exactly unheard of on the OTC Markets. What investors need to take into account in this case is the fact that CAPV doesn't seem to have enough to its name to retain its monstrous gains:

  • Cash & Total current assets - $10 (NUMBER NOT IN THOUSANDS)
  • Total current liabilities – 4.5 MILLION
  • No revenues for Q2 2015
  • Net Loss for Q2 2015 – 25 thousand

To be fair, the company's latest quarterly report listed nearly 37 million in long-term assets, all in the form of buildings and investments. However, the fact that the same report also claims that CAPV doesn't have enough cash on hand for its employees to order pizza for lunch, makes the former claim a bit suspicious.

As usual, it is up to investors to weigh all the risks before committing to any stock. However, a word of fair warning might be in order here – CAPV is currently volatile and presents enterprising traders with great opportunities for profit, but like any hype jump, its charts could turn ugly really quickly.

 

Comments 1

1. Guest
November 24, 2015, 08:38AM

Quotes Again you forgot to mention the Hard Rock PR from October....and the drastic decrease in OS in the 8k, and how it may relate to possible negotiations.

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