Petar Ilievski

The Case of ValCom Inc.(PINK:VLCO)

by Petar Ilievski June 23, 2011
VLCO-logo.jpgAfter the great May jump, ValCom Inc.(PINK:VLCO) stock has been declining, despite the positive news coming out in June. Back then, it was a combination of 10-Q and press releases that started the hype. It is yet to see whether a catalyst would come to reverse the negative trend in June.VLCO-23.06.11.png

So, yesterday session closed at $0.034 per share, which is a modest decline of the stock price for the day. The volume of traded shares was interesting, though. On Tuesday, 1.2 million shares exchanged hands. Yesterday, only the volume due to short selling was over 1 million. The total volume for the day - almost 10 million. And, there was no catalyst to inspire this hype. Let alone, in previous weeks when there was news at hand there would not be such vivid trading activity.

For example, on June 14th ValCom announced another financing agreement, similar to that from the end of May. The impact on the market, however, was hardly noticeable. Now, one reason for that might be the lack of 8-K forms regarding this agreements, which does not exactly inspire confidence in investors.

On a related subject, the 10-Q statement is also an interesting document. The latest one covering the first three months of 2011 includes the following:

  • $113k in cash;  
  • $24 million in total assets;
  • $4.3 million in total liabilities;
  • $3.3 million in accumulated deficit;
  • $no revenues;
  • $16.6 million in net loss;

Peculiar data, especially the net loss for the 3 months in question. In fact, it is the net loss for the last 6 months. There is a positive ratio of assets to liabilities, on the other hand. All in all, this forms a picture of uncertainty, one that might fit skilled speculative investors. It is yet to see, however, if this might become a suitable ground for long-term ones.

Comments 1

1. Guest
July 09, 2011, 11:17AM

Quotes Superior thinikng demonstrated above. Thanks!

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