The long fall of VelaTel Global Communications, Inc. (PINK:VELA) has been interrupted at least for a couple of days, although it’s hard to come up with a solid logical reason for that.
After hitting a new low on Monday, VELA started pulling back, and yesterday it closed up 57.89% at $0.03 on more than 13 million shares, despite the lack of news or promotions.[BANNER]
There was a Form 4 filed yesterday, but it’s hardly a reason for celebration. On March 16 Mario Alvarez, COO of VELA, disposed of nearly 2.5 million shares.
The trans. Code is D which means the transactions were sales back to the issuer of the securities. Price varied between $0.014 and $0.019. On March 14 and 15, Isidoro Gutierrez, Chief Administrative Officer of VELA, sold 500 thousand shares in the open market for $0.026 and $0.02 respectively.
Even if one disregards the insider transactions, there is nothing to indicate VELA has found a way out of the financial hole it is in. The price increase doesn’t seem to be based on any fundamental development.
