Canal Capital Corp. (COWPP) (COWP) is the last stock that we identified for our readers. Moving more than 1.5 million shares in October 2019, COWPP is said to be a real estate company by trusted sources. However, we don’t believe that a real estate business could create such massive stock returns in a very short period of time. The share price exploded up from $0.05 to more than $0.5. Ihub members believe that the company’s business model is about to change, which would make sense. With that, we prefer to proceed with extreme caution on this name.
PRICE ANALYSIS
Let’s understand the most recent stock price dynamics. From June to September 2019, Canal Capital traded below $0.05. Of course, in July, the stock volume spiked up. However, the share price did not gain sufficient traction until October 2019, when it reached more-than-a-decade highs.
Currently, there is a substantial amount of stock demand. Without any news from Canal Capital, identifying the sources of demand is very difficult. With that, something is pushing the share price up. Even if we don’t know a lot about the future of Canal Capital, following its stock price dynamics will not hurt:
Source: BigCharts
Source: BigCharts
IT IS A LOW FLOAT RUNNER
The share count is equal to 9 million shares. Directors own 58% of the total amount of shares outstanding, which makes the company a low float stock. It means that COWPP is expected to exhibit a significant amount of volatility, which is a risk. Without due knowledge about volatility, Canal Capital Corp. is not a stock for risk-averse profiles. Ihub members highlighted the potential stock returns on this name time. With that, let’s tell it this way: things that go up very fast, also tend to go down at similar speed.
SHORT INTEREST IS QUITE LOW
Short interest is currently very low at 7,700, which suggests that shorts are not around. Most probably, they liquidated their stakes before the stock price spike of October. In any case, bulls will appreciate that a significant downside pressure at the current share price mark does not seem to exist. It does not mean that the share price will go up, but bears are not, at the moment, interested in this name:
|
DATE
|
SHORT INTEREST
|
% CHANGE
|
AVG. DAILY SHARE VOL
|
DAYS TO COVER
|
SPLIT
|
NEW ISSUE
|
|---|---|---|---|---|---|---|
| 09/13/2019 | 7,700 | 1.32 | 28,480 | 1 | No | No |
| 08/30/2019 | 7,700 | 1.32 | 28,480 | 1 | No | No |
| 08/15/2019 | 100 | -98.55 | 101,774 | 1 | No | No |
| 07/31/2019 | 6,888 | -7.28 | 116,344 | 1 | No | No |
| 07/15/2019 | 7,429 | 100.00 | 379,971 | 1 | No | No |
The short interest of the company’s preferred stock, COWPP, is also very low. But, concerning this case, in 2019, the decline in short interest is significant. In September 2019, short interest was at 4,400, 17x less than that in July 2019. It is very valuable information for bulls:
|
DATE
|
SHORT INTEREST
|
% CHANGE
|
AVG. DAILY SHARE VOL
|
DAYS TO COVER
|
SPLIT
|
NEW ISSUE
|
|---|---|---|---|---|---|---|
| 09/13/2019 | 4,400 | 0.00 | 132,839 | 1 | No | No |
| 08/30/2019 | 4,400 | 0.00 | 132,839 | 1 | No | No |
| 08/15/2019 | 4,400 | -90.09 | 90,691 | 1 | No | No |
| 07/31/2019 | 44,401 | -42.96 | 204,129 | 1 | No | No |
| 07/15/2019 | 77,848 | 2,494.07 | 306,555 | 1 | No | No |
CONCLUSION
With a market capitalization of $3.6 million, in 2011, Canal Capital Corp. reported revenue of more than $2 million and net income of $0.2 million. With 2011 net assets of $0.2 million, the company needs to report new financial statements. Yes, the company’s recent stock dynamics are interesting. Canal Capital is drawing the attention of the market. However, we need to know what are the new financial figures.
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Disclosure: We hold no position in Canal Capital Corp. either long or short, and we have not been compensated for this article.
