Continental Resources Corporation (CRGC) and it’s Last moments in market. Let us review the recent market response of Continental Resources Corporation (CRGC). In 2012, CRGC was traded at a highest price of $0.36, the lowest prices of $0.16 and the year end market price (on December 31) was $0.28. It is found that the price of the stock was almost stable from September to December in 2012. Following its likely win-win dissolution and liquidation in exchange of stocks with PGLC, the price was considerably increased in last week of January and first week of February in 2013. In 2013, the highest market price of this stock was $0.39 due to the above reasons. The company was traded at a closing price of $0.32 on February 21, 2013 with a decline of $0.07.The effect of dissolution and liquidation of CRGC has made a temporary observer to the investors. The company is now trading at a price of the stock is $0.34 (22.02.2013).
What is the impact of dissolution and liquidation in market? Investors are monitoring the last moment’s trading; as Pershing Gold Corporation (PGLC) and Continental Resources Corporation (CRGC) jointly announced Continental’s record date for dissolution and liquidation. The record date is March 01, 2013 and liquidation will occur shortly, as per press release by PGLC dated on February 21, 2013. I think that dissolution and liquidation of CRGC was a time worth decision to give return to its shareholders. The company’s recent financial health was too weak to run independently. Excess investment, operating expenses causes CRGC’s serious liquidity crisis as the company was yet to make any revenue. The company management has no good alternative to source fund. As, PGLC was comparatively better position than CRGC, a dissolution and liquidation in exchange of PGLC share to CRGC shareholders may not lose CRGC shareholders. As such, the PGLC will enjoy some benefits too which may give long term advantage to the shareholders.
