It was a short run in the middle of the month, yet a major one for VelaTel Global Communications Inc.(OTC:VELA). Almost a 100% increase in the stock price in a matter of 3 days, followed by a slight decline. Now VELA just holds the newly gained positions. The question is – can the stock hold them 
There have been press releases, announcements and news coming out, which fueled the above-mentioned hype that led to this sharp spike. In terms, a calm period is at hand, where there are no major changes in the price, yet vivid trading activity on the stock market continues to take place. For example, yesterday more than 2 million shares exchanged hands, as the session closed at $0.16 per share. This was probably a result of the announcement that came about the agreement for VelaTel to provide a 4G network in China. It is worth-mentioning that shorters also had a busy day as 609k shares exchanged hands due to short-selling activity.
As to the question of whether the stock performance would remain positive, it is possible. One way for this to happen is to present the public with good financial figures. Now that the third quarter is over, results should be expected soon. Whether they would be optimistic is another matter. For example, this is what the last 10-Q with an end-date June 30th has to offer: [BANNER]
- $115k in cash;
- $9.7 million in total assets;
- $27.2 million in total liabilities;
- $242.6 million in accumulated deficit;
- $168k in revenue;
- $2.4 million in net loss;
Not exactly inspiring results, and probably one of the reasons why VELA fell to $0.10 recently. In terms, depending on what the next ones would be, another spike might come into place, just as another sharp drop might follow.
