Gediminas Jasionis
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Canuc Resources Corporation (CVE:CDA) Targeted by Promoters

by Gediminas Jasionis Apr 18, 2011
cda_chart.pngIt appears some of Canuc Resources Corporation (CVE:CDA) fund raising efforts might backfire as interested parties turn to stock promoters.

The most likely prelude to this was the poor stock performance. CDA stock didn't move upon the announcement of a $1.3 million private placement which was closed on April 5, nor did it twitch half a month before that when the company secured over $750 thousand.

The reasons are plain and simple - low liquidity and a business that would have already failed if the management couldn't reach into investors' pockets. Adding to the uncertainty of not holding trusted financial records, the company is also being promoted by Shazamstocks.

canuc_logo.jpgEven though the price for advertising, paid by Future Money Trends, was not so spectacular - merely $7.5 thousand, traders should see a noticeable difference in today's performance, at least early into trading. Shazamstocks is one of the older considerably popular stock promoters. Their campaigns on average manage to raise stock prices 9.3%.

Like with any other promotion, most of the action is likely to take place in the first half an hour or so after the opening. The compensation is rather low, so it is likely a one-day promotion even though it wasn't clearly stated in the disclaimer.

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