Zoom Telephonics Inc (OTCMKTS:ZMTP) Jumps On Financing News

[[tagnumber 0]][[tagnumber 1]]Zoom Telephonics Inc (OTCMKTS:ZMTP) seems to be doing pretty well this year. The ticker first jumped in the second half of May and gained over 80% in value, crossing the $1 per share mark. It dropped slightly lower and continued to move sideways in the following months.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Earlier this month we saw [[tagnumber 6]]ZMTP[[tagnumber 7]] begin to climb the charts and pass above the $1 per share mark once again. What’s strange is the fact that the upward run seems to have come out of nowhere. There were no new press releases or filings that would suggest such movements.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Speaking of filings, let’s take a look at what [[tagnumber 6]]ZMTP[[tagnumber 7]] has to offer in its report for the second quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 17]] [[tagnumber 18]]cash: $252 thousand[[tagnumber 19]] [[tagnumber 18]]current assets: $3.96 million[[tagnumber 19]] [[tagnumber 18]]current liabilities: $2.18 million[[tagnumber 19]] [[tagnumber 18]]quarterly revenues: $2.59 million[[tagnumber 19]] [[tagnumber 18]]quarterly net loss: 105 thousand[[tagnumber 19]] [[tagnumber 28]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The cash positions aren’t that great, but the situation surely looks decent. The revenues are good and the net loss isn’t that big. The only problem is that things seem to be in a standstill as the company recorded nearly the same results in the same period last year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]It seems, however, that things might change for the better. Yesterday the company announced that they have raised $3.437 million in a private placement, selling 4,909,999 shares of [[tagnumber 6]]ZMTP[[tagnumber 7]] common stock priced at $0.70 per pop to Manchester Management, LLC.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The money will be used for working capital and other expenses that will accompany the company’s Motorola branded cable modem products that should start shipping in the beginning of 2016. The press release pushed [[tagnumber 6]]ZMTP[[tagnumber 7]] an impressive 28.33% up the charts and the ticker closed at a 52–week high of $1.54 while the 172 thousand traded shares generated $216 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]It seems, however, that [[tagnumber 6]]ZMTP[[tagnumber 7]] has stepped outside of its comfort zone and we see the ticker 18.82% in the red as of the writing of this article. Only time will tell where things will go from here and you should be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]