Cardinal Resources Inc (OTCBB:CDNL) was a massive mover during Monday’s trading session. The stock surged by close to 98% on the back of 2.5 the daily average volumes. The stock has been in a strong downtrend after forming a near term bottom near levels of $0.030. The relative strength index for the stock continues to trend in the overbought zone but shows no signs of a reversal. The momentum oscillators for the stock continue to trend higher indicative of strong buying interest. The stock is currently facing resistance near its 200 day moving average. Traders believe the stock could hed to levels of $0.0484
Cardinal Resources Inc (OTCBB:CDNL) reported that it completed the first sale of ‘Mobile Red Bird System’ in China. It is the first product of the scheduled initial order of three systems by the firm HangZhou Sky Valley Water Technology Co., a consortium established to commercialize and market company’s water treatment know-how in Asia and other global markets. These systems will be manufactured from Cardinal’s U.S. based production site.
The details
Cardinal Resources reported that the first system order will be a cash transaction and it will be booked in the last quarter of this fiscal. This system will be utilized for demonstrations with main clients that have orders pending a successful demo of the Mobile Red Bird system in China.
Kevin Jones, the CEO of Cardinal Resources, stated that based on the performance of their systems, they are confident of the system’s ability to fulfill China’s water quality guidelines. The company have broad experience in China through its environmental engineering services and boast a pilot ‘Red Bird System’effectively treat and fulfill the China Standards in the past. Jones further added that they believe the sale process and the forthcoming demonstration of the will quickly manufacture large sales of larger systems.
The plans
Cardinal Resources’ CEO added that they have identified the China market being a major element supporting their growth strategies. For instance, the UN report as of June 2015, states that 381 million residents in China don’t have access to treated water. Also, the U.S. Department of Commerce ITA projected the total addressable market in China at $29 billion in year 2010.
Cardinal Resources have carefully been seeking for a good technology associate in China. The CEO said that based on extensive meetings and discussions, they believe to now have that associate and look forward to a sustainable market for their family of ‘Red Bird Systems.’
