China Tel Group, Inc (OTC:CHTL) took the way down again. After a hardly notable gain last Friday, yesterday the stock 
lost almost 11% on the market. Along with the price fall, traded volume of CHTL increased by 2 million shares for the day, which is a clear sign that investors started to dump off their shares.
China Tel Group, Inc., through its controlled subsidiaries, provides fixed telephony, wireless broadband and telecommunications infrastructure engineering and construction services. According to the records, China Tel has not filed any significant news on its activities over the past days. On April 7 the company announced it has acquired a 51% equity stake in Chinese hydrogen fuel cell manufacturer VN Tech, though the news failed to impress traders. In fact, even the promotions in end-March could not push up CHTL stock price and the regular losses continued.
Presently, the only announcement about China Tel is that the company is to host a year-end conference call for investors and analysts on April 21, where CHTL will discuss its operations and expectations. Though, there may be quite a reasonable explanation on the recent loss. Apart from the conference call announcement, a few days ago the company filed its annual results, which seem to be the main reason for traders’ disappointment.[BANNER]
According to the 10-K, the auditors of CHTL have issued a going concern opinion based on the fact that the company may not be able to pay its current obligations. The management claims they do not have the funds necessary to conduct any meaningful business activity due to their huge liabilities and losses incurred. Thus, if CHTL is not able to raise substantial additional capital in a timely manner, the company may be forced to cease operations. Moreover, any agreement they may enter into for additional capital may discourage other equity investments.
