After  the great May jump, ValCom Inc.(PINK:VLCO) stock has been declining,  despite the positive news coming out in June. Back then, it was a  combination of 10-Q and press releases that started the hype. It is yet  to see whether a catalyst would come to reverse the negative trend in  June.

So, yesterday session closed at $0.034 per  share, which is a modest decline of the stock price for the day. The  volume of traded shares was interesting, though. On Tuesday, 1.2 million  shares exchanged hands. Yesterday, only the volume due to short selling  was over 1 million. The total volume for the day - almost 10 million.  And, there was no catalyst to inspire this hype. Let alone, in previous  weeks when there was news at hand there would not be such vivid trading  activity.

For example, on June 14th ValCom announced  another financing agreement, similar to that from the end of May. The  impact on the market, however, was hardly noticeable. Now, one reason  for that might be the lack of 8-K forms regarding this agreements, which  does not exactly inspire confidence in investors.

On a related subject, the 10-Q statement is also an interesting document. The latest one covering the first three months of 2011 includes the following:

  • $113k in cash;      
  • $24 million in total assets;
  • $4.3 million in total liabilities;
  • $3.3 million in accumulated deficit;
  • $no revenues;
  • $16.6 million in net loss

Peculiar data, especially the net loss for the 3 months in question. In  fact, it is the net loss for the last 6 months. There is a positive  ratio of assets to liabilities, on the other hand. All in all, this  forms a picture of uncertainty, one that might fit skilled speculative  investors. It is yet to see, however, if this might become a suitable  ground for long-term ones.