and on Friday it added the next 6.32% to its market price. Along with the price, the traded volume of CHTL also rose up to exceed 3 million shares for a day.As China Tel has not published anything about its business recently, the most reasonable explanation on the gain appears to be the promotions for the stock. According to stockpromoters.com, CHTL was promoted three times during the past week, though the company has paid no compensation to the promoters. As the current activities of China Tel remain unknown, apparently just the promotions have pumped up the stock price.
China Tel Group, Inc., through its controlled subsidiaries, provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. During the last week of November, the company announced that its subsidiary Perusat S.A has finalized a contract for ZTE Corporation for providing Perusat equipment and services for its deployment of a wireless broadband telecommunications network in Peru. The first phase of the initial geographic coverage in seven cities was scheduled to be completed by approximately May next year.
Historical data shows that at the beginning of this year CHTL stock price reached approximately $1.80 per share, while presently China Tel is trading at $0.19. Last month, the company’s stock had another climb, once again on no news on its business.
According to its latest 10-Q report, since inception China Tel has accumulated losses of over $201 million, while its available cash totals about $138 thousand. As CHTL has current liabilities of approximately $26 million, the auditors express substantial doubt about the company’s ability to continue its operations.
Considering these results, it seems like the short-term gains may not be enough to support China Tel and the company will need additional funds for its operations.
Article via HotStocked.com
