Market analysis of Continental Resources Corporation (CRGC)
Investors are observing the last moment’s trading of Continental Resources Corporation (CRGC) as it is now known to all that 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. What is last moment’s market response to CRGC following this release? Albeit CRGC was traded at a highest prices of $0.36, the lowest prices of $0.16 and the year end market price of CRGC (December 31,2012) in 2012 was $0.28. 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 shock to the investors. The current trade price of the stock is $0.34 (22.02.2013).
I personally believe that dissolution and liquidation of CRGC was a good solution 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. The company 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. In effect, PGLC will get some comparative advantages which may bring long term benefit.
"I personally believe that dissolution and liquidation of CRGC was a good solution.." Really? Just because this outfit has never made a nickel of profit after years of flopping around like a dead fish? Enlighten us some more O' Swami as this will be your last post to a dead board.