ETAK-logo.jpg2011 has certainly been one of the most interesting in the trading history of Elephant Talk Communications Inc. (OTC:ETAK). All-time highs, trading frenzies, sharp spikes – all factors that determine the stock performance in the last nine months. A truly marvellous run, yet the question is – has it come to an end? ETAK-29.09.11.png

In terms of shares traded, the peak was reached back in May when more than 2.5 million shares exchanged hands. As for the stock price – it hit the top in July, right after Independence Day – $4 per share on a volume above 1 million shares. It was then that the decline began, and it continues up-to-date. Trading volumes now are way below 500k as most sessions blink red with decreasing prices. The last one this Wednesday was no exception. A bit less than a 6% decline in the share price, the session closing at $2.65 per share, 178k shares exchanging hands for the day.

Now, it is worth-mentioning that it was the end of May that the run up started, which effectively ended in the beginning of July at $4 per share. Before that, the stock price would gravitate between $2.2 and $3.2 on high trading volumes. So, the question is whether this recent free fall would drop down to the levels of May, or the ones from September last year. The difference comes close to $1. On the other hand, there is the possibility of another sharp spike in the share price that would inspire traders. [BANNER]

All in all, volatility and uncertainty. There is, of course, an objective source to look into – the balance sheet, but it is also neither too pessimistic nor inspiring confidence. The last 10-Q to come out covers the second quarter of 2011 and includes the following:

  • $4.6 million in cash;
  • $17 million in total current assets;
  • $13.6 million in total current liabilities;
  • $166.2 million in accumulated deficit;
  • $7.7 million in revenues;
  • $6.7 million in net loss;

As mentioned, not exactly inspiring. Still, better than the ones for 2010. In terms, there are opportunities for profits, but there is also the uncertainty and risk associated with it.