Cardinal Resources Inc fka CDNL

[Opportunity Strikes]

Cardinal Resources (CDNL): Cash Flow On The Horizon

CDNL is a 5 cent stock. It's a 5 cent stock, down from $.70 in January. The 2015 high is $.70. The low is $.03.

There is, of course, a reason it's $.05 down from $.70. Clearly, the Red Bird water purification systems potentially have enormous value to 3rd world countries.

And of course, with a market value of a mere $5 million, and orders from African countries in excess of $30 million, one wonders why the stock is so absurdly cheap.

Today's news helps provide an understanding of the issues the company is facing. While the market got very excited by the story in the early going, I don't think the market understood the process the company has to go through to get from a purchase order to a funded purchase order.

The recent renewed interest in the stock led to today's new release which describes in great detail the process CDNL is going through to get the purchase orders from paper to money and manufacturing. Let me condense it for you.

According to today's news, the Republic of Cameroon placed a $28.8 million order in late 2013 for 35 Cardinal Red Bird Systems and ancillary equipment.

After the contract was signed, the Ministry of Economy, Planning, and Development issued a Sovereign guarantee on April 30, 2014. Obviously, that was over 1 year ago. This triggered the start of the financing process.

Environmental assessments were then required, which completed in May at all 14 communities slated for installations.

Meetings occurred in May with the CEO, Cameroon government officials, CAMWATER (the organization that mobilizes the funds), Standard Chartered Bank, and a US Export Import Bank Delegation.

This sounds like a massive amount of Red Tape and and awful lot of cooks in the kitchen to me.

Cardinal Resources now states Phase I of the contract will be "implemented in the 3rd quarter". Q3 started yesterday. Terms require a $4.3 million down payment, and staged payments through 2016 to complete the order.

That's a lot of information which hopefully leads to the receipt of the company's first PO of magnitude in the near term, and provides a very detailed explanation of the process.

The complete installation will provide 75 liters per day of clean water for 73,000 people.

Here's what you need to consider. Do you want to take a shot a this stock in the $.05 to $.10 range before the funds are flowing?

It seems to me it's a tremendous speculation at this abysmally low price, especially when you consider the stock is 2 cents above this year's low, and $.65 from the previous high.

Sure the company is in financial difficulty. If you got your first $28 million contract in 2013 and were still waiting for funding in mid 2015, you would be as well.

It's reflected in the stock price. When that money starts to flow, you'll make a killing. If it doesn't, you might not.

Click Here to read today's news. It gives a clear and detailed description of the process, and makes me feel like the first major breakthrough is imminent.

It's been my experience that for a small company like CDNL, the first one is the hardest. Once you get that first one, the follow ons happen in rapid fashion.

It comes down to you. Do you want to take the shot today at $.05 to $.10, or wait until the first money flows and you might be paying $.25 to $.50 or more?

At this time, you can sure own a lot of stock for very little capital.
http://www.otcjournal.com/Cardinal-Resources-CDNL-Cash-Flow-On-The-Horizon/af/archive/20150702-1/