CNRR - "The Controlling shareholder and the Board have evaluated the company’s growth path and has decided to discontinue to invest in the oil and gas business, as a result, the company will pursue shareholder value building opportunities in other business areas. The Company will continue to retain its ownership interest in its joint venture producing oil well in Alberta, Canada."
From the 10k:
Cash and cash equivalents $4,980,735
Total liabilities $60,359
So what we have here is basically a shell looking for new opportunities, with:
No convertible debt or preferred stock outstanding.
86% insider held
.088 per share in cash with a very low burn rate.
A market cap of $2.1 million at .038
An oil well that should give them about $40,000 per year which will cover the expense of their SEC reporting.
This, imo, is a pretty unique situation. Most shells have nothing and when they do an r/m give out shares, sometimes way too many. CNRR has the cash to buy a small company. With that balance sheet and current market cap seems like a pretty safe hold for those with patience.
My opinion as to the selloff in June:
Their decision to get out of the oil business was reported in the 10k and released on 9/12 but probably made much earlier (10k is as of 5/31/16). Sellers in June were people disappointed in that decision. No form 4s filed so I doubt insiders sold any. There were no prs of any type and no retail buyers in June. Without retail buyers market makers can take it down and I'm confident that they were the buyers in June. They collected many shares at .02 and I'm sure there's lots they'll sell at the current ask as long as there is not a flood of retail orders coming in. So, nibble away at .038.
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