Crown Baus Capital Corp Could Slide Further
Crown Baus Capital Corp (OTCPK:CBCA) was an enterprise without incomes and with $185 to its name on the benefit side of its asset report. It fundamentally did not exist, and had no prospects of existing, given the absence of resources for contribute. This, joined with its then huge market capitalization – which remained at $1.94 billion with the stock at $0.01 – made it sure that the stock would drop greatly.
At $0.01, CBCA still has a market capitalization of $145 million. Since CBCA keeps having no business, it most likely won’t quit going down at these levels, either. In any case, that is to some degree irrelevant – at these levels, there’s dependably the hazard the organization deals with some other sort of pump, as the stock is generally still firmly held. Moreover, since CBCA is attempting to cross out its arrangement to purchase WebCongress for stock, the real wellspring of free shares may vanish, in this way making it a more dangerous short.
There is no sense in intuition low liquidity is an obstruction, on the grounds that for a submitted short merchant, notwithstanding offering at 1/2 its present quote STILL introduces 90% drawback. That is an impact of huge descending percentual moves.