Throughout this week we have covered the nearly unbelievable rise in share of CD International Enterprises Inc (OTCMKTS:CDII) stock. The dramatic appreciation in the stock price was caused by a press release and subsequent 8K SEC filing issued by the company stating that they had agreed to a $350 million deal to supply copper concentrate to a Chinese client.
As we pointed out yesterday, CD International Enterprises Inc (OTCMKTS:CDII) and their CEO have failed to name the buyer and at the same time, there is no reliable information on the company’s current share structure. After the stock rose over 5000% earlier this week, shares have been steadily dropping. Even after an 8K filing was released yesterday, the stock saw a quick jump up but then continued its current downtrend.
Shares of CD International Enterprises Inc (OTCMKTS:CDII) are currently trading just north of one cent on a volume of 133 million this afternoon. Many traders are speculating that the company is using this opportunity to massively dilute shareholders by releasing new shares into the market to raise capital. From our experience this certainly seems to be the case as a tremendous amount of volume continues to pour into the stock, and despite the alleged $350 million agreement, the shares keep falling. Because of the lack of information available on the stock it’s impossible to verify or debunk such claims of dilution, but we urge investors to be a bit more cautious when dealing with CD International Enterprises Inc (OTCMKTS:CDII) shares. One thing is certain, and that is the total number of outstanding shares have increased substantially since September.