Zoom Telephonics Inc (OTCMKTS:ZMTP)’s Climb Comes To An End

[[tagnumber 0]][[tagnumber 1]]This year has been rather good for the stock of Zoom Telephonics Inc (OTCMKTS:ZMTP). The ticker rushed up the charts in the second half of May and managed to keep quite a lot of the gains it had made in the following months.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Another upward run was initiated in mid–September and it pushed [[tagnumber 6]]ZMTP[[tagnumber 7]] to new heights. The company itself has a steady business, but that is also one of the main problems. [[tagnumber 6]]ZMTP[[tagnumber 7]] hasn’t done much progress as it is evident by the numbers contained in its report for the second quarter of this year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 15]] [[tagnumber 16]]cash: $252 thousand[[tagnumber 17]] [[tagnumber 16]]current assets: $3.96 million[[tagnumber 17]] [[tagnumber 16]]current liabilities: $2.18 million[[tagnumber 17]] [[tagnumber 16]]quarterly revenues: $2.59 million[[tagnumber 17]] [[tagnumber 16]]quarterly net loss: $105 thousand[[tagnumber 17]] [[tagnumber 26]] [[tagnumber 0]]While those numbers are pretty decent for an OTC listed company they haven’t changed much when you compare them to those from the same period last year. Still, things might change in the near future.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The upward run that [[tagnumber 6]]ZMTP[[tagnumber 7]] experienced recently was based on no particular press release and seemed to have come out of nowhere. By the end of last month, however, the company came out with some positive news. [[tagnumber 6]]ZMTP[[tagnumber 7]] announced a private placement with which they managed to raise $3.437 million in funding.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The money will be used for the Motorola branded cable modems that should begin distribution in the beginning of next year. And while this is certainly something that would be tempting for some investors it seems that the hype has run over.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]After reaching a 52–week high of $1.80 per share in Monday’s trading we saw [[tagnumber 6]]ZMTP[[tagnumber 7]] lose 11.67% in yesterday’s trading. As the ticker went on to close at $1.59 we saw a total of 56 thousand shares change their owners and generate $97 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Despite the lack of news we see that [[tagnumber 6]]ZMTP[[tagnumber 7]] has started today’s session rather well and is sitting 17.92% up as of the writing of this article. It seems, however, that the ticker has reached a level at which it can become very volatile so be sure to do your due diligence and time your trades accordingly.[[tagnumber 2]]