GPS Tracking Boosts Location Based Technologies, Inc. (OTC:LBAS)

The world grows smaller, yet with booming trade and travel the need to know where you are on the globe is a must. People, vehicle and loads need tracking and Location Based Technologies Inc. (OTC:LBAS) provides integrated systems for any type of logistics.

The LBAS annual report spiked interest in the stock and it has been traded in increased volume and price in the past few days. We noticed no active promotion since the low-grade messages from 2011, yet the PR messages, combined with quarterly results, increase investors’ interest. Let’s see if the company has to offer in terms of financial stability:

• $376,554 cash

• $5.52 million current assets

• $5.75 total liabilities

• $7.8 million net loss

The future of the company depends on finding enough customers in a very competitive environment where tracking technologies are relatively cheap and easily found. In its annual report, Location Based Technologies Inc. expects a rising demand of such devices and projects this will affect its business in a positive manner, despite the competition. In the coming years, the company plans to put its efforts in personal tracking devices, allowing better security for children, pets or adults.

A reassuring sign for the company is that so far, we have not registered any paid promotions for it. All interest in the stock, with some sharp movements, came from either an unknown compensation promotion, probably free, or the company’s own press releases. Still, those messages are forward-looking and are not proof of success, as the devices and patents of LBAS still fight for marketing success. On the good side, the devices are among the top, reviewed by respected tech website CNET.

The LBAS ticker was mentioned by promoter Stock Rich, which shows a long history of free or compensated promotions. Its mailing campaign for Biomagnetics Diagnostics Corp. (OTC:BMGP) created a noticeable spike in volume, after which the stock slid quickly by more than 80%.

It’s still early to say whether LBAS will shot progress in its business and stock price without erasing all gains. It’s always the best to perform your own due diligence on a company before joining the hype around its stock.