Small cap stocks CD International Enterprises Inc (OTCMKTS: CDII), Creative Edge Nutrition Inc (OTCMKTS: FITX) and Metrospaces Inc (OTCMKTS: MSPC) have all been the subject of recent as well as past paid for stock promotions. Of course, there is nothing wrong with properly disclosed stock promotions or investor awareness campaigns, but they can and do often backfire on unwary investors and traders alike. With that in mind, will investors and traders come out winners with these small caps or should they just be left to the promoters? Here is a quick reality check:CD International Enterprises Inc (OTCMKTS: CDII) Has Been Busy Announcing New Deals
Small cap CD International Enterprises is a US based company that produces, sources, and distributes industrial commodities in China and the Americas and provides business and financial corporate consulting services. On Friday, CD International Enterprises closed at $0.133 for a market cap of $7.60 million plus CDII is up 29% since the start of the year and down 91.4% over the past five years according to Google Finance.
What's the Catch With CD International Enterprises? According to various disclosures, transactions of $2k, $6k and $12k have or will occur to mention CD International Enterprises in various investment newsletters. Last Wednesday, CD International Enterprises announced that CDII Minerales Peru SAC, a jointly owned subsidiary of CD International and Minera Mapsa S.A., had entered into a three year agreement with Gramce Minerals Resources Sur Peru SAC for the latter to supply a total of up to 1.28 Million Metric tons of iron ore to CDII Peru for ultimate distribution into China. Earlier in the month, CD International Enterprises also announced that its International Magnesium Group subsidiary had entered into a five year distribution agreement with Manali Engineering - India for sales of its magnesium products in India while back in October, CD International Enterprises announced that its wholly owned subsidiary, CDII Minerals, Inc, had successfully completed an initial shipment of Bolivian iron ore to a leading metals trading company in China. A quick look at CD International Enterprise's financials reveals revenues of $18,582k (most recent reported quarter), $16,973k, $16,781k and $32,803k for the past four quarters along with net losses of $653k (most recent reported quarter), $1,912k, $1,939k and $45,506k. At the end of June, CD International Enterprises had 1,025k in cash and $11,321k in receivables to cover $23,620k in payables and $34,585k in current liabilities. That's somewhat of a mixed picture but at least CD International Enterprises has a sizable top line on its income statement.Creative Edge Nutrition Inc (OTCMKTS: FITX)Announces an Important Distribution Agreements Plus Breaks Ground on a Marijuana Facility
Small cap Creative Edge Nutrition Inc was created to develop a diverse portfolio of health oriented nutrition products. On Friday, Creative Edge Nutrition Inc fell 5.26% to $0.0036 for a market cap of $2.65 million plus FITX is down 18.2% since the start of the year and down 96.4% since October 2010 according to Google Finance.
What's the Catch With Creative Edge Nutrition Inc? According to various disclosures, a transaction or transactions of $2.5k has or will occur to mention Creative Edge Nutrition Inc in various investment newsletters. Just this morning, Creative Edge Nutrition Inc announced that it had entered into a sales and distribution agreement with Phoenix-Distribution, a large distributor in the Australian market with over 500 stores and in the New Zealand market with over 300 stores. In addition and last week, Creative Edge Nutrition Inc announced that's its subsidiary, CEN Biotech, Inc., had already broken ground to start the build-out of a 58,000 sq. ft. building for its medicinal marijuana operation after announcing earlier in the week that it was leasing a six acre site with buildings (a 26,400 square foot steel barn and a 2,000 sq. ft. building already on the property) in the Town of Lakeshore, Ontario, Canada. A quick look on Google Finance reveals that Creative Edge Nutrition Inc has reported revenues of $1.01M (most recent reported quarter), $0.91M, $1.27M and $2.26M for the past four quarters along with net losses of $1.35M (most recent reported quarter), $1.20M and $0.80M and net income of $0.84M. At the end of last June, Creative Edge Nutrition Inc had around $0.04M in cash to cover $2.21M in current liabilities. Given those financials, it will be interesting to see more financials from Creative Edge Nutrition Inc and see how the company intends to pay for its new 58,000 sq. ft. marijuana facility.Metrospaces Inc (OTCMKTS: MSPC) Gives an Update About Its Projects in Argentina and Venezuela
Small cap Metrospaces Inc is a boutique real estate development company which acquires land, designs, builds, and develops then resells condominiums and Luxury High-End Hotels, principally in urban areas of Latin America. The company's current projects are located in Buenos Aires, Argentina, and Caracas, Venezuela. On Friday, Metrospaces Inc sank 22.22% to $0.0007 for a market cap $1.63 million plus MSPC is down 99.1% since the start of the year according to Google Finance.
What's the Catch With Metrospaces Inc? According to various disclosures, a transaction of $16k has or will occur to mention Metrospaces Inc in various investment newsletters. Last Thursday, Metrospaces Inc gave an update on its current projects in Argentina and Venezuela along with potential acquisitions and new developments. However, anyone who is an observer of Latin American politics or knows the history of both Argentina and Venezuela (as in leaders like Peron, Hugo Chavez etc) might be a bit nervous about investing in a company involved in real estate in either country. Moreover, a look at both Google Finance and Yahoo! Finance does not reveal much in the way of financials. So its investor beware.