iTalk, Inc. (OTCBB:TALK) Drops by a Third Despite More News
After slowly crawling down the chart for about two weeks, iTalk, Inc. (OTCBB:TALK) was hammered 30% down in Monday’s session. The news release from the company did nothing to stop the slaughter, as the price dove to a new low.
Paid email stock pumps helped TALK climb to $2.00 per share, then continued touting the stock despite a crash of roughly 50% in two sessions in mid-May. Despite the efforts of pumpers and a downpour of optimistic company press releases speaking of expansion and development, the stock price gradually decreased and was finally dealt a heavy blow yesterday.
Shortly before yesterday’s open, TALK published another news release, announcing the launch of a subsidiary website. TALK acquired RocketVoIP against 500 thousand shares earlier this year. The release stated that the company will attempt to re-engage older subscribers to the VoIP service and launch a new marketing campaign. The news did nothing to help the stock stop its slide and TALK crashed 30% on heavy volume of over 1 million shares traded.
The last promotional email for TALK came through on June 26, reiterating a company press release, and it seems the ticker is completely unable to do anything to sustain its price levels without the assistance of pumps, considering its movement in the absence of touts.
We’ve long since pointed out that TALK is a pump job, and one that could still hurt, even at what may now seem a lucrative price to enter. The twist here was TALK selling 700 thousand of its common shares to ‘unrelated shareholders’, at $0.05 per share. This happened long before TALK was traded actively. The company effected a forward split of its shares and turned those 700 thousand shares into 17.5 million common shares and brought their price to $0.002 per share. It doesn’t take a certified financial analyst to do the math and see who stands to profit from selling loads of now-expensive TALK shares, even after the stock had been deflated as low as its last close of $0.36.