Voltari Corp (NASDAQ:VLTC) lost 6.43% in the last trading session but that wouldn’t ruffle many bullish feathers. The stock rose by more than 20% in just 4 weeks and what is a meager 6% correction compared to that? On March 31st, the stock had closed at $1.01 and 22 days later, it hit a high of $21.75 before closing sharply lower at $15.14. The entire market is watching this amazing stock now and that is probably enough for the bulls dump it to the public and get out of it.
Voltari Corp (NASDAQ:VLTC) helps brands, advertising agencies and marketers to maximize the economic potential with greater reach using the mobile ecosystem, digital marketing and advertising solutions over smartphones and similar devices. The company tries to capitalize on the latest technological applications like sophisticated data curation and modeling and predictive analytics. Still the financial performance of the company has been anything but good.
Voltari Corp (NASDAQ:VLTC) has lost $28 million in FY12, $25 million in FY13 and $29 million in FY14. The revenue has shrunk from $133 million in FY10 to $12 million in FY14. With the cash reserve at a meager $6.4 million as of December 2014, it is hard to imagine the reason for such an incredible rally in the stock. The only possible reason could be Icahn Associates increasing its stake in the company from 29% to 52% (61%, including warrants) by participating in a rights offering on April 1, when the investment company bought 90% of the offering at $1.36.
Technically, the only way to understand the impact of the latest rally is using the logarithmic scale, which shows that the stock has been rejected from a long term supply area in the band of $18.50-$22.00. The short term support comes from the band of $7-$8, which can be tested easily if the volatility remains this high.
