Except for a change in its BoD, nothing new about Elephant Talk Communications, Inc. (OTC:ETAK) has come up for quite a while now. In addition, the change itself had an extremely limited impact on ETAK stock and the Oct. 27 session will hardly be worth remembering. As far as yesterday’s session is concerned, however, it yielded quite a different result.
Oddly enough, ETAK gained 6% yesterday, closing at a four-week high of $2.70 per share. Shifting more than 840 thousand shares, ETAK marked the second highest turnover generated for the last two months. Neither news, nor paid advertising occurred to back up this performance. Yet, it is by far not among ETAK’s best performances, especially considering that only a couple of months ago the company’s shares used to be traded around the $4 level.
Elephant Talk Communications, Inc. specializes in providing business software solutions to companies occupying the financial services industry. Through its subsidiary ValidSoft, ETAK also counters fraud electronic solutions with regard to card and Internet channels.
As an OTCQb market player, ETAK has so far been a diligent SEC filer. On Aug. 15, the company submitted its latest quarterly report. Covering the three-month period ended Jun. 30, the 10-Q form indicates:
- cash reserves in excess of $4.6 million;
- working capital surplus of $3.4 million;
- $7.79 million of total revenue;
- quarterly net loss of $6.7 million.
As it is, Q2 of 2011 is indicative of ETAK in two basic aspects. On the one hand, this is the fourth consecutive quarter of declining revenues. On the other hand, this is the fourth time the company has registered a negative net result. One thing is for sure – going in the black seems quite a challenging task, at least in the foreseeable future.
