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Voltari Shares Crashing; This Investor Is Still Short On 'Ridiculous' Price Action

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Voltari Shares Crashing; This Investor Is Still Short On 'Ridiculous' Price Action
  • Shares of Voltari Corp (NASDAQ: VLTC) plunged nearly 20 percent Wednesday morning.
  • Volatri's stock has surged more than 75 percent over the past five days alone as the company plans on exploring "additional strategic opportunities from time to time" in addition to its new real estate investment business.
  • The Street Sweeper simply warned investors: "Growth? No!"

Shares of Voltari have surged nearly 75 percent over the past five days alone, adding to the nearly 1,000 percent surge year-to-date. The provider of merchandising, digital marketing and advertising solutions, announced an entry into the real estate investment business.

Voltari announced in August that it has already began implementing a business transformation in which it will exit the mobile marketing and advertising business. The company will now focus on acquiring, financing and leasing commercial real estate properties. In addition, management will also "explore additional strategic opportunities from time to time, which may include opportunities with respect to its intellectual property, investments in various industries or acquisitions.

"BUYER BEWARE!," The Street Sweeper's Sonya Colberg warned investors in a report on Tuesday. "Growth? No!"

Colberg suggested that investors "must watch out" for this stock with a market cap of just barely $60 million as of Wednesday. Colberg's main issue with the company is the fact that it "only" has $2.5 million in cash and the company will need to raise funds and will "likely" take advantage of the recent surge in its stock price to issue additional stock.

"Dilution appears imminent," the report concluded. "Don't get stuck holding de-valued shares."

Posted-In: Sonya Colberg Street SweeperNews Short Sellers Short Ideas Intraday Update Movers Trading Ideas Best of Benzinga

 

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