Good Morning, Trader!
Cardiff International Inc. (CDIF) is a true ground floor trade here at a PPS under 1/4 per penny -- but the way it moves, the “ground” can rise!
Over the last month, CDIF has printed an average bottom-to-top intraday move of 24%! And the trend now points UP!
I’ll discuss down below how CDIF has changed its business to deserve its recent volatility, but for now, take a gander at that chart:
Make a wish! Sure, there used to be days when CDIF didn’t budge one crumb, but lately it’s nearly all candlesticks like on a trader’s birthday cake.
The biggest bounces lately have clustered around 38% to 58%, usually with at least a little secondary dip-and-recover action later in the day.
And all those 2-digit leaps and shimmies in the last month “only” lifted the closing price 50%, so the ante is still only $0.0023!
CDIF just crossed back up above the “bullish” 50 on the RSI so it looks like the broad trend can stay tilted upward for a while if nothing changes.
As long as price stays above a lofty 18/100 of a penny, we also have implied support beneath us in the form of the 50 MDA.
So what’s the wind blowing fresh and hot into CDIF’s tiny sails? On April 9 we got a waft of news from the CEO that got traders’ attention:
CDIF is rapidly evolving into a holding company looking to acquire small businesses that need help growing to the next level!
The model is unusual: CDIF doesn’t simply write a big check, but slides assets and preferred stock to a new subsidiary. (Read more)
Of course the new preferred shares don’t trade like CDIF so the dilution threat to existing “common” holders is not as intense!
But the shares can become collateral for outside funding and the new assets on the balance sheet also look impressive -- and may even be useful!
The first subsidiary here is the “old” CDIF: a shopper rewards company called “Legacy Card” that’s developed a college savings program.
It works like any other loyalty cash-back system: swipe your card, earn points that help fund a specialized savings account. (Read more)
How many people are using it and how much money are they making for CDIF? Until the new auditor issues the latest numbers, we don’t know.
What we do know is that CDIF says it’s practically debt-free now and down here at a $4 million market cap it doesn’t take much to move the needle.
All it took was the new auditor announcement to get the once-limp volume bars spiking! Imagine what REAL news can do here!
Either way, the business doesn’t have to be huge down here at 1/4 cent per CDIF share! Refresh that chart and consider that trend your friend!
See you soon!