If you bought stock of U.S. National Telecom, Inc. (PINK:USNL) prior to yesterday’s session hoping for a big breakthough, you must be bitterly dissatisfied with USNL’s latest market performance.
Yesterday, USNL slumped by a staggering 67.32% closing at $0.0549 per share on a volume of 3.25 million. Considering that the company reduced its A/S by 35 billion shares only two weeks ago or so, this is hardly the scenario USNL’s supporters might have expected. Anyway, USNL stock has shrunk considerably leaving little room for improvement in the foreseeable future.
As it is, an official explanation by the company’s management with regard to the current situation has not surfaced yet.
Prior to the authorized stock reduction, USNL shares were traded above the $0.50 threshold, only to take a huge nosedive afterwards. The company pretends to be focused on high-potential investments in the real estate sector. Yet, its managers do not seem to have acquired any lucrative assets in this respect so far.
Since USNL is a development stage company, it reported no revenues for the third fiscal quarter of 2011. What is more, the company has practically no current assets and has incurred a quarterly net loss of $15 thousand.
If USNL continues to carry out its business operations at the rate it has been doing so far, its stockholders will be unlikely to generate returns on their investments any time soon.
