ERF Wireless, Inc. (OTC:ERFW) had an impressive session yesterday, although no news of financial reports were published.
The price of ERFW stock increased 35% for the $0.0135 close. The volume was also significant. At the end of the session, approximately 12.1 million shares had been traded.
This is the highest volume traded in a session since January when ERFW had some promotions pumping its price up. After the effect of the newsletters wore off, the price began retreating to previous lows.
An iHub poster going by the name of makingbiigdough suggested that yesterday’s activity was the result of market makers taking advantage of the upcoming quarterly, and they “…shook some more weak hands out…”[BANNER]
An alternative explanation was provided by another poster, Berts Shadow. His guess was “Leak of upcoming 1Q11 10-Q info to selective investors perhaps?” If that was the case, it was a violation of SEC rules.
The previous financial report by ERFW is the 10-K for 2010. The numbers in it are hardly conducive to great excitement:
- $43 thousand in cash and $919 thousand in total current assets
- $3.5 million total current liabilities and $9.2 million total liabilities
- $8.5 million net loss for the year
- OS more than doubled during 2010
Since the operations of the company are clearly resulting in a loss, ERFW finances its continued existence through drawing on credit lines and selling shares of its stock. Perhaps, the agreements the company has signed since the beginning of the year will help improve its balance sheet, however, until the report comes out traders will have to operate blindly.
