Italk Inc. (OTCBB:TALK) Up 2.25%, Lot78 Inc. (OTCMKTS:LOTE) Up 3.24%
Northern, WI 04/30/2013 (GDPInsider) – Italk Inc. (OTCBB:TALK) is trading up 2.25% after opening the day’s trading at $0.99. Volume is 1.072 million and the stock has a range of $0.97 and $1.04. But the northward movement of the stock seems tied to news that TALK is set to acquire RocketVoIP, Inc.
RocketVoIP is a 10-year-old residential and business broadband VoIP provider and Italk announced yesterday that it has signed a letter of intent to buy the company. Although the deal is still subject to pre-closing due diligence, the markets have responded positively to the news. The acquisition will mean an additional service offering for Italk and CEO David F. Levy believes it will add value to the company’s existing operations. “Through this acquisition, we plan to increase our direct network footprint providing our customers with the necessary tools and network capabilities to begin servicing the exploding VoIP services marketplace. Not only will the expansion benefit new and existing customers of Italk, but further builds upon and strengthens the quality of service aspects of VoIP communications in general,” said Levy in the release announcing the intended acquisition.
Italk has a market cap of $42.50 million and the stock is recovering from a recent decline.
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Lot78 Inc. (OTCMKTS:LOTE) is up 3.24% having started trading today at $7.71. The stock is trading northwards on the day’s previous close of $8.02 and has a trading range of $7.25 and $9.20. Volume in today’s trading is 510,485 and the stock is trading down on its 52-week high of $11.65. The stock is deep into overbought territory with a RSI of 81.32.
Some analysts believe that the stock’s recent surge from $0.80 to may be due to artificial buying but this sentiment has not slowed the rise of LOTE by much. Indeed the company has also had to make a special release advisory after it found out its stock had been listed on the Boerse Berlin Stock Exchange (“BBSE”), without its prior consent. In the release the company hinted that this “unauthorized” listing may be the blatant attempt to make “a significant naked shorting attack directed at the company.” LOTE has since got the backing of legal counsel to handle the matter and this announcement doesn’t seem, to have slowed the movement of the stock.
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