Georgi Kamburov

Elephant Talk Communications, Inc. (NYSEMKT:ETAK) With Minimal Gain Despite Promotion

by Georgi Kamburov August 14, 2013
ETAKchart1.pngYesterday we covered Elephant Talk Communications, Inc. (NYSEMKT:ETAK, ETAK message board) who have decided to spare $100 thousand for a promotional campaign. This move certainly managed to increase the amount of investors showing interest in them and traded volume more than tripled compared to the previous session. The movement of the stock on the other hand remained rather pessimistic.

ETAK opened with a gap up at $0.87 but began dropping almost immediately and at the end of the day were sitting at $0.81 resulting in a gain of just 1.25%. This outcome was still deemed a success by the company and yesterday Damn Good Penny Picks joined in the campaign through its affiliates Penny Stock Newsletters, Damn Good Penny Picks and Penny Picks. All of them disclose receiving $35 thousand as compensation.

0IALSchart.pngEarlier this month they took part in the pump for InterActive Leisure Systems, Inc. (OTCMKTS:IALS). Despite the massive 69 email alerts send for the company in less than two weeks they had only one positive session and have been crashing ever since.

But ETAK are a NYSE-listed company and the increased popularity can be beneficial for them. They seem to have recovered from the lows of early-July and have been fluctuating between 80 and 90 cents for some time now. The reorganization of their business is going on smoothly transitioning from the traditional landline services to the mobile division who has been posting increasing revenues for eight consecutive session.

Their fundamentals still leave something to be desired with a net loss of $7.2 million and a negative working capital. It is a good thing then that ETAK have made a deal with Iusacell in Mexico that will double their recurring monthly revenue base. The cyber security division ValidSoft is also making continual progress by signing a major UK bank as one of its clients.

For now ETAK remain a risky investment. The company is down 80% from the price levels held in 2011 but are displaying signs that results may continue to improve by the end of the year.

Yesterday Xumanii, Inc. (OTCMKTS:XUII) managed to stop their free fall by closing 1% in the green. Left to fend for itself the stock is now down to just 6 cents per share. One of the biggest losers was Soul and Vibe Interactive Inc.(OTCBB:SOULD) who wiped more than a third of their inflated price after a 1-for-3 reverse split and are sitting at $2.

Comments 0

Type the characters that you see in the box (5 characters).