CHTL started falling down on huge volume. On Friday, the stock lost 0.89% of its price and its traded volume reached approximately 3 million shares.Obviously, investors are getting disappointed by CHTL and sell off their shares at full speed, setting the stock on low trade. Still, the new year’s price trend is hard to be predicted yet.
China Tel has not released any news about its activities recently, apart from its Subscription and Shareholder Agreement with Golden Bridge Network Communications Co., Ltd. from mid-December. According to the agreement, CHTL and GBNC “will each contribute certain resources in order to deploy and operate a 4G telecommunications network in the PRC”. After this news was published, no more on the company’s business was revealed.
About the same time when the announcement about the agreement was published, CHTL stock moved up on promotions, however, the price fell down again in a while.[BANNER]
China Tel Group, Inc., through its controlled subsidiaries, provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. In end-November, the company announced that its subsidiary Perusat S.A has finalized a contract for ZTE Corporation for providing Perusat equipment and services for its deployment of a wireless broadband telecommunications network in Peru. The first phase of the initial geographic coverage in seven cities is expected to be completed by approximately May, 2011.
However, despite the optimistic projections the latest quarter report of CHTL doesn’t look much promising. According to it, since inception China Tel has accumulated losses of over $201 million, while its available cash totals about $138 thousand. As CHTL has current liabilities of approximately $26 million, the auditors express substantial doubt about the company’s ability to continue its operations.
In that case, the future movement of CHTL stock should be very carefully observed.
