It was an expected start of the week for China Tel Group Inc. (PINK:CHTL). No special movement on the stock market as there is no catalyst to form it. In fact, it has been a long time since a real catalyst was put to use for a noticeable stock performance. Nowadays, it is a pattern of decline. 
So, Monday was much of an exception to the rule. A little over 1.3 million shares exchanged hands for a modest 4% increase in the stock price, the session closing at $0.12 per share. A month ago, it was $0.18 per share. Five months ago – $0.39 per share. In fact, this negative stock performance closely resembles what happened in 2010. The difference is that back then the starting point of the free fall to follow was $0.60 per share.
It is interesting to mention that the balance sheet of the company is not the best out there, but not the worst as well. For example, the 10-Q covering the first three months of this year includes the following:
- $3.59 million in cash; [BANNER]
- $3.89 million in total current assets;
- $28.9 million in total current liabilities;
- $21.4 in accumulated deficit;
- $204k in revenues;
- $8.3 million in net loss;
So, on one hand, there is cash at hand to fund operation. On the other, however, there is the huge net loss of 8 million just for these 3 months. In terms, the figures above call for one thing – caution. The overall uncertainty and the negative stock performance recently, coupled with the figures above, given many reasons why this stock might not be the choice of the general public, but of skilled speculative investors mainly.
