Yesterday the share price of Single Touch Systems, Inc. (OTC:SITO) stock hit the 70 cents resistance for a third time this month only. The filed quarter report at the beginning of the week maybe initiated much more intensive trading, which was supported by the news about a new CEO on Tuesday. 
SITO closed the last session at the above mentioned hard resistance level of $0.7. There was a minor 1.45% share price increase from the previous day, while the trading volume amounted 262,000 shares. That appears to be seven times the average, signaling that SITO chart looks bullish these days and traders may try again to break the resistance for one more consecutive time.
On Tuesday morning, Single Touch Systems announced to have appointed James L. Orsini as its new CEO. Mr. Orsini will also get a place in the company’s Board of Directors and he has previously been Executive Vice President and Director of Finance and Operations at an advertising agency. Also, the press release states that at Single Touch Systems he will “look to accelerate the adoption of Single Touch’s abbreviated dial code, ready reminder, couponing and advertising programs for major retailers and brands”.
SITO stock currently has a market value of around $89 million, which equals 33 times the company sales for the past four quarters and 22 times SITO net tangible assets as of end-March 2011. This looks like a very optimistic value assigned to the company, even taking into account the recent improvements. SITO sales have increased almost ten times in Q1/2011 as compared to Q1/2010. In addition, this year the company has managed to cut down further the losses from operations.
