Yesterday, YTB International Inc. (OTC:YTBLA) stock doubled its price, following the upward direction set before the announced yesterday financials.
YTBLA stock noted is next 52-week high, along with the highest volume traded this year. All of this on almost no news.
Since the beginning of the month, YTBLA stock is climbing up almost each day, on no news from the company. The last one, prior to the released yesterday financial results for the quarter ended this June, was from last Monday.
Then, YTBLA was expected to meet about 5,000 travel agents, representatives and guests through attending the annual national convention in St. Louis.
The company has no announcements concerning the number of new contracts signed as a result of the event, but this was the time of the first attempt to rush YTBLA stock.
Yesterday, investors were probably attracted by the company’s statement, saying that “YTB International, Inc. was recognized as the 29th largest seller of travel in the U.S. in Travel Weekly’s 2010 Power List, based on 2009 annual retail value of travel services booked.” And the miracle happened.
YTBLA confirmed the upward trend with a 100% price increase and 2 million shares traded. But this looks insubstantial, as the calculations show that from the date of the announced annual national convention YTBLA stock gained 300%.[BANNER]
We don’t know how the story will go on, since despite the management’s optimism about the company’s financials and despite the optimistic mood of investors about the gaining YTBLA stock, some facts in the latest financial statement of YTBLA should be pointed out.
Although YTBLA reported a good cash position, revenues decreased for the first half of this year as compared to the same period last year. The good cash balance resulted from the issuance of debt, the net cash proceeds from which exceed the cash provided by the company’s operations.
Mentioning debt, it is good to remind that the maturity date of the company’s loan with FH Partners LLC was extended, but only to August 31, 2010.
