China Tel Group, Inc (OTC:CHTL) shares were slightly weaker yesterday, losing 2.18% of their value. Until the end of the day, traded volume reached 923 thousand shares, which isn’t a significant price change as compared to the average value.
CHTL.ob is a corporation, which provides engineering, deployment, and operations services related to the development of wireless broadband telecommunications networks. According to the company’s website, the team intends to implement WiMAX telecommunication networks in several cities in China.
The CHTL stock was last promoted on Aug. 23 by APS, which didn’t result in a price surge at that time. APS disclosed that it had been “compensated $15,000 for market awareness on CHTL.ob by a 3rd party”.
Despite the promotions and the grand intentions of the company, CHTL stock price is relentlessly falling down. The reason behind this sad plight might be pointed in the company’s balance sheets. The 10-Q report reveals that total liabilities are nearly 3 times more than total assets. In addition, CHTL.ob has accumulated a net loss of $201 million since the date of its inception. Just for the last quarter, net loss has increased by nearly $20 million. Meanwhile, there has been a mediocre $37 thousand increase in revenues. So, CHTL.ob is practically bleeding out of money with a negative cash flow of $13 million.
Prior to making a sensible decision about this company, investors should carefully assess if the realization of CHTL’s grand plans is plausible, bearing in mind the company’s financial condition.
