Life Clips Inc (OTCMKTS:LCLP) Makes A Bit Of A Recovery
The stock of Life Chips Inc (OTCMKTS:LCLP) suddenly came on the radar in the second half of April when it slowly started to increase its daily volumes. The ticker then began to climb the charts, reaching new heights in the middle of May, but began to hesitate soon after amidst massive volumes.
Things quieted down, but the pump emails kept coming in. The interesting thing is that the company has directly paid the Tech Stock Insider a total of $150 thousand for a six month advertising campaign. Why is this so interesting, you may ask? The reason is simple – LCLP is in a dire financial state.
- cash: $17 thousand
- current assets: $48 thousand
- current liabilities: $65 thousand
- long term liabilities: $5.74 million
- revenue for the nine month period ended March 31: $534
- net loss for the nine month period ended March 31: $5.23 million
It is always strange when you see a company spending hundreds of thousands of dollars on promoting its stock when it has such weak financials and is mostly considered bad management by investors that know what they are doing. Despite that LCLP has managed to climb to a market cap of around $30 million and keep it.
The company has been aiding the pump with regular press releases and it has managed to close the past couple of sessions in the green. It added 11.48% to its value yesterday and closed at $0.62, while a total of 1.1 million traded shares generated $658 thousand in daily dollar volume.
The company stock, however, is correcting once again in today’s session, already sitting 8.25% in the red. In any case, be sure to do your due diligence and weigh out the risks before putting any money on the line.