This does not mean that there is an actual promotion.
The incredible chart,price rise and volume through Tuesday LOOKED like there was a promotion because you don't normally get that kind of volume and marked price rise without a massive promotion.
The company is not doing a promotion,though the mention of projected revenues can be a factor. I haven't seen any promotion in scores of penny newsletters I receive,though many newsletters have mentioned(not promoted -no paid promo)CWRN simply because of the price rise and volume.
If there was a promotion,especially a paid promo,don't you think the organized special interest group that attacked CWRN the last 2 days would have put forward the evidence?
To my knowledge CWRN has not done a promotion since I've held the stock-Aug 2009.
There is no reason for them to be doing a promotion now. Production activities are occupying their thoughts and time and have been at least since August,when Bob told me they weren't even thinking about pink sheets-that production would take care of all that.
Why would they need a promotion when CWRN's transition to substantial revenues is imminent and incredibly rare?
They aren't diluting either-for the same reasons- and they are 3 million under budget(see PR).
Yes, delays and difficulties are common in any major project. Thus good budgets account for that.
I've never seen a penny stock make an actual successful transition to the kinds of revenues CWRN will start reaping beginning next month. So this would explain the real(not inflated)price rise,which will look like nothing in coming months if they proceed as planned.
Etmm/shorters have been artificially depressing the stock price for many months. So the transition to coming revenues,which many people either didn't recognize or believe until the 12-30 PR, coupled w shorters temporary loss of control,resulted in the unusual price rise.
But regulators don't know those are the reasons until they look into it further-thus the status change until any promotional activity can be investigated.
Revenue 1st quarter alone of 32 million after a Feb-March buyback of 50% would be 2.77 cents/share.
(32 million divided by a 50% buyback/retirement of 1,154,000,000 shares-see otc O/S/market cap,as I noted before. At a PE of 10 that would put share price at .27.7 cents.
(2.77 times 10).
They are probably nearing 200 thousand tons stockpiled times 175/ton would be 35 million dollars. I believe they said 118k tons stockpiled by late December.
So they would only have to ship what is already essentially stockpiled to reach 1st quarter revenue goal. The efficiency will improve,coupled w end of port dredging etc(is the dredging finished?) to allow them to almost double that in subsequent quarters as they have estimated.
Somebody indicated average industry PE is 33-which sounds high but the iron market is a bull market-its not in recession-w 50% net margin.
Because prices have risen from ca $28 seven years ago to $174 today and one web article indicated $200 to $250/ton this year,partly due to destruction of iron production in major Australian and Brazilian floods and Indias export restrictions.
