CaseyCorp Enterprises, Inc. (OTC:CCPR) Chasing the Promotional Gains
09 Dec 2010

Since the beginning of the week, CaseyCorp Enterprises, Inc. (OTC:CCPR) is trying to regain traders’ attention for its stock. Yesterday that finally happened, unfortunately not that much on the second for the week press release, but more on a paid stock promotion.

The promoters received $20,000 for a one-month investor relations contract and the opening of the campaign showed quite successful yesterday. CCPR got its trading volume boosted up to almost 329,000 shares and closed the session with a 22.22% jump of the share price. During the session, CCPR price even touched the half a dollar level that has been a level of resistance for more than six months.

In the promotional newsletter, the stock of CaseyCorp is presented as highly undervalued relative to the sales the company is making. In its two press releases, the company is also trying to point out its revenue growth potential, stating that it is aggressively purchasing scrap gold and is planning to expand its gold buying operations into Western Europe.

CCRP current P/S ratio of 0.29 looks actually extremely low when compared to the industry average P/S of over 46, but the quarter report of the company for the thee months ended September suggests that the low market value is probably deserved. The sales of CaseyCorp are declining, being in the last quarter not even half of the sales for the quarter ended December last year.

The company has no sustainable profitability and the gross margin (TTM) of 1.41 is also extremely low as the industry average is 21.53, raising concern are also the facts that CCPR has not made any significant investments this year to improve its operations. Further on, the company’s has basically only one considerable refiner that it sales gold to, amounting for 88% of the revenues in the nine months ended September 2010.

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