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Is this weird or what? All of a sudden AvTel is merely
rolling out ADSL service. Yesterday, however, no one was
sure what they were talking about when the company referred
to a modem that was 50 times faster than current modems.
I can't figure out whether to send soap-on-a-rope to AvTel
officials or a "dumb sh*t of the millennium" award to the
reporter(s). How did this get so out of hand?
SANTA BARBARA, Calif. (CBS.MW) -- Shares of AvTel
Communications remain halted Friday by Nasdaq officials a
day after the stock soared an astonishing 1,278 percent.
The previously little-known company announced Thursday that
it was rolling out a high-speed Internet-access service in
several California locales over a so-called asymmetric
digital subscriber line. Yet the technology is not new and
many other companies already offer, or plan to offer,
similar high-speed access.
The shocking increase in AvTel's (AVCO) share price prompted
the Nasdaq to halt trading after the market closed Thursday.
A Nasdaq spokesman said the organization has requested
information from AvTel officials in an effort to ascertain
why the stock shot up so high.
"Until that information is provided, the stock will remain
halted," he said.
AvTel officials could not be immediately reached for
comment, but have said they do not know why the stock rose
so much. Wall Street analysts do not follow the company.
AvTel's share's closed at 31, up 28 3/4. Volume soared to
3.6 million, 1,090 times above its average daily volume of
3,300.
Another factor that may have benefited AvTel was confusion
over what kind of high-speed Internet-access product it was
offering. Some news reports suggested that it was unveiling
a new modem that's 50 times faster than current modems and
works over existing phone lines. In fact, the company does
not make modems.
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