Liberator Media Holdings, Inc. (OTCBB:LBMH) Aims for Peak Again

Liberator Media Holdings, Inc. (OTCBB:LBMH) is again at a round peak, closing Wednesday at $1.80. The company declared a cash dividend of 3 cents per share, and in the days leading to and following the announcement the upward trend accelerated. Volumes were a bit subdued, at $392,000. The new trading day opened with an iffy price direction and competing ideas about where LBMH should go.

It is no wonder LBMH could afford the dividend, given that it holds:

• $10 million in cash, a $3 million increase on a QoQ basis

• $8 million in current liabilities

• $17.4 million in sales, a $0.7 million increase QoQ

• $2 million in net income, a $0.6 million increase QoQ

The dividend would be paid at the beginning of October, and the company may expect stronger trading in the days leading up to the date. The sum to be paid out was listed as a current liability.

And for now, LBMH has found support even at the higher prices, with more buying instead of profit realizing. Message boards even sounded the suggestion that at those rates of development, LBMH may be suitable for an uplisting to NASDAQ. And to the company’s credit, the current levels were reached without a promotion.

LBMH has shown the possibility for sharp drops in the past weeks, though this is hardly an indicator for future moves. The price change on Wednesday was zero net percents, and the end of the week should show whether this ticker deserves to keep the levels, or if it is again selling time.

A graph that recalls the move of LBMH is that of SafeStitch Medical, Inc. (OTCBB:SFES). While the company looks solid, its rise was a bit too rapid and caused a price correction, but then SFES reached up again to $1.60.

Blue Earth, Inc. (OTCMKTS:BBLU) had its moment of peaking and a series of frightened sales about a month back, when it reached a height at $3.75. Now, BBLU has recovered to $3.40, though mostly drifting sideways near that price, without enough enthusiasm to start a clear trend.

While a higher price guarantees little, in some cases it may be a good basis for investor confidence. It is still best to perform your own due diligence on any company you choose, and stay away unless you can afford a sudden correction.