After a whole month without any news from Zevotek, Inc. (OTC:ZVTK), the company’s stock fell deeper on the stock chart. In fact, ZVTK stock is dangerously approaching the lowest possible value which is allowed by the law.
The most possible reasons for the stock decline are the financial troubles which have been accompanying the company. The solvency ordeals are perceived in every financial report filed by ZVTK so far.
To start with, ZVTK reported $5 thousand revenues for the three months ended March 31. Apart from being insufficient, the generated sales were also 6 times lower than the same quarter in 2010. Over the same period, ZVTK had reduced the net loss by $145 thousand, but this apparently failed to impress anyone on the background of such a weak sales quarter.[BANNER]
What is even worse is that ZVTK is now even below the level it was when the 1 to 20 reverse stock split was executed at the end of 2010.
Now that ZVTK has plunged to the triple zeros deeps, it will be difficult for investors to rely on the technical indicators. For example, the MACD hasn’t given any clear signal since mid April. There is no guiding signal from the other popular technical indicators as well.
It seems that ZVTK stock had succumbed to the dilution which came after the stock split, and made along with the detrimental finances the stock reach chart depths. Apparently, the company will have to devise some way to improve its sales in order not to completely lose its appeal on the market.
