Historical Market Performance : China Natural Gas

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Historical Market Performance
China Natural Gas (Symbol: CHNGQ) has become a public company by reverse merger on December 6, 2005. It was then allowed to be traded on the Over-The-Counter Bulletin Board (OTCBB) with the symbol CANL. By that time, it had a total of 69 million registered shares issued and outstanding. On June 5, 2009, it has successfully jumped from OTCBB to NASDAQ Stock Market (NASDAQ). Historical share price performance can be seen in the following chart started from the listing in OTCBB:
Historical Share Price of CHNGQ

Market performance before 2009
According to the chart, it can be seen that immediately after the reverse acquisition, the company has experienced a huge positive effect on the share price, increased from
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This downward trend didn 't stop until 2009.

Market performance in year 2009
2009 was a crucial year. It was in this year that the company has been successfully uplisted into NASDAQ. This event appeared to be the result of recovery of its share price considering the fact that its 2008 net income has increased by 50 percent compared to that of 2007 ended with 15 million (), however, that was probably not the only reason. During the second quarter of 2009, this company performed a so-called “Reverse Stock Split” which effectively increased their share price satisfying the minimum share price requirement for shares to be listed in NASDAQ (). This 1-for-2 reverse stock split has reduced the number of shares by about 50% from 29 million to 14.6 million, yet there was no change to the company’s market capitalization pre-split and post-split (). It can be said that the reverse stock split has generated an illusory image that this company was growing so that more investors would be attracted by this company (). The negative effect of this false image can be clearly seen from the above chart. The traded volume in 2009 has become significantly larger than those of previous years’. This share has seized the chance and almost achieved three times of the original price by the year end. It is noticeable that it was during this period, this company has raised its capital of $50 million.

Market performance in year 2010
In 2010, serious
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