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Voltari Corp (OTCMKTS:VLTC) Banking On Carl Icahn

Voltari Corp (OTCMKTS:VLTC) Banking On Carl Icahn
Written by
Jarrod Wesson
Published on
December 26, 2017
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Voltari Corp (OTCMKTS:VLTC) is the next profile that our readers should get to know. Not only because the stock delivered triple digit returns in a very short period of time, but also because many market participants are acquiring large stakes in the company.That's not all.We had a look at the balance sheet and found that in the last annual report, the company reported $6.2 million in long term investments, which market participants should have remarked.But, let's wait a bit. Before we provide all the information, please have a look at the following stock chart and form your own opinion. Remember to note that more than 300 thousand shares changed hands and the share price spiked up from $0.5 to over $2 a share. 1 month chart for VLTCBusinessVoltari Corporation is headquartered in New York and is focused on acquiring, financing and leasing commercial real properties. Company Logo - Voltari Corp OTCMKTS:VLTCThe most important assets include a property in Long Branch, New Jersey, and another one in Flanders, New York. 7-Eleven Corporation and JPMorgan Chase Bank are the lenders of those properties.The company seems to be ending a transformation process that commenced in August 2015. During this period, VLTC has executed many changes. The mobile marketing and advertising business was stopped and the company focused on reducing costs and dealing with debt holders.In our opinion, now that the restructuring process is close to the end, many market participants are willing to acquire shares of the company. Delisting from the NASDAQVoltari Corp shares used to be traded in the respected exchange NASDAQ and the company was assessed many times on many big websites. It used to be popular in the social media.Have a look at the number of articles about the stock in Seeking Alpha: Seeking Alpha on Voltari Corp OTCMKTS:VLTC

What happened?Unfortunately, the advertising business commenced to decline. On December 14, 2016, the company received a letter from The Nasdaq Stock Market, LLC, indicating that the stock was going to be delisted. The company was not in compliance with exchange regulations.On December 23, 2016, the company started trading on the OTCQB marketplace.We believe that the fact that the company was well-known a few years ago may be helping the stock. Its visibility is larger than the average stock being traded on the OTC Markets, which means that its news are reviewed more. This can explain part of the recent volatility in the stock price.What did make the share price spike?We will study what happened on December 19, 2017, as it seems to be what market participants want to know. Check the share price spike more in detail in the following stock chart:

1 month chart for VLTCThe following document to which we had access was responsible for the share price appreciation: Acquisition of stock - Voltari Corp OTCMKTS:VLTCIt shows that a big fish, Carl Icahn, acquired preferred stock of the company and he owns a total amount of $31 million. We believe that this is an impressive amount of stock.FinancialsThe following is the state of the balance sheet in the last annual report. Remember to check the large amount of total long term investments owned by the company and the amount of cash:Period Ending12/31/201612/31/201512/31/2014Current AssetsCash And Cash Equivalents4141,1806,256Short Term Investments---Net Receivables-323,494Inventory---Other Current Assets5208561,533Total Current Assets9342,06811,283Long Term Investments6,2153,592-Property Plant and Equipment-252667Goodwill---Intangible Assets---Accumulated Amortization---Other Assets10192380Deferred Long Term Asset Charges---Total Assets7,2506,00412,330SourceThe following are the liabilities:Accounts Payable2,1232,1814,107Short/Current Long Term Debt---Other Current Liabilities1717-Total Current Liabilities2,1402,1984,107Long Term Debt4,500--Other Liabilities2571461,451Deferred Long Term Liability Charges252929Minority Interest---Negative Goodwill---Total Liabilities6,9222,3735,587SourceConclusionCurrently trading with a market cap of $12 million, VLTC is an exciting story among small caps. With a very low float, market participants will be expecting a lot more of volatility in the future share price. Thus, readers who appreciate volatility games in the market should have a close look at this name.To sum up, follow this name, as it looks set to fly higher.We will be updating our subscribers as soon as we know more. For the latest updates on VLTC, sign up below!Disclosure: We have no position in VLTC and have not been compensated for this article.Image courtesy of Insider Monkey via Flickr

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