trade over 2 million shares on the market, while the price jumped approximately 42%. The massive trade provoked many questions, however, the most interesting one was what’s behind the story.The records show that China Tel has not released any news these days and nobody is familiar with its current activities. Though, traders on the investorshub.com message board made different suggestions on the gain. The most impressive one appeared to be the claim that CHTL stock price rose up due to some news on Facebook. According to it, Tsuing Wang, President of Excel Era Limited Hong Kong, stated to have the assets to finance China Tel and the “check was in the mail”. The claim was immediately banned as a speculative promotion of CHTL, though it certainly succeeded to pump up the stock price.
The only problem was the fact that a year ago Excel Era announced it has entered into a stock purchase agreement for 159,599,803 shares of Series A common stock, representing a 36% stake in China Tel, for $480 million. What is happening now and is this a new version of an old investment? At his point, no official announcements by China Tel have been made and the speculations among traders continue.[BANNER]
China Tel Group, Inc., through its controlled subsidiaries, provides fixed telephony, wireless broadband and telecommunications infrastructure engineering and construction services. A year ago, CHTL stock price was significantly higher, however, since then it has moved down. And while issuing more shares of its common stock, the financials of China Tel remain disappointing.
According to its 10-Q report, since inception the company has accumulated losses of approximately $204 million, while its cash totaled $35,759. Considering the fact that CHTL also has liabilities of $9.8 million and the losses are expected to continue, the auditors express substantial doubt about the company’s future operation.
