Flint Telecom Group, Inc. (OTC:FLTT) demonstrated another attempt to break the price downtrend, but with no news to support this one day rally, it most likely will end up as a simple correction.
The strongest trading volume recorded for FLTT is the only thing different from the other short rallies. The stock is not worth to hold higher values as the company is in a seriously adverse financial situation:[BANNER]
• Decreasing revenues;
• Miniscule gross profit margin;
• Continuous large net losses;
• Very heavily leveraged balance sheet;
• Virtually no cash or other liquid assets;
• Losses continue to be covered with borrowed capital.
Based on the continuing deterioration of the fundamentals, stock price will likely remain on the downtrend, slowly declining after each and every correction. The bottom is still far from being found, and increases in trading volume are likely the cause of the decreasing price, not the increasing interest from traders.
Flint is seriously threatened with bankruptcy. The business has recently announced a stock purchase agreement with Kodiak Capital Group, LLC, under which the company will be able to sell $15 million worth of shares. This means even more dilution to shareholders, providing only temporary financial relief for the troubled business.
