Liberator Medical Holdings, Inc. (OTBB:LBMH) Stays Red, Drops Below $2

After three consecutive hiccups, yesterday the stock of Liberator Medical Holdings, Inc. (OTCBB:LBMH) slipped again and closed a little over 5% down. Share volume was still above average, even if it had cooled down a little from Monday, with 340 shares changing hands.

With yesterday’s red session, the price once again dipped under the $2 mark. Just four sessions ago, LBMH closed at $2.37, more than 40 cents higher than its last close. Even though the stock managed to weather the first dip of Sep 20 and recovered to a new high, the last four red days pressed the ticker down, below the psychological $2 barrier.

While the drop may look like a cashout from people who bought early in the climb and are now monetizing their shares, the volatility that comes with that is a risk factor that should not be overlooked. Some traders on discussion boards speculated that once the stock hits its 50-day moving average it may start another climb but this is all guesswork.

It’s true that after LBMH started climbing from $1 in June and nearly doubled, the drop that followed sliced a similar percentile share off the price and then LBMH recovered just as it was about to hit the MA line but expecting solid repeating patterns with OTC stocks is not always a wise thing, even if the company in question has a strong foundation like Liberator. Where LBMH‘s price goes next remains to be seen and traders should bear in mind that even though the dip may look lucrative, there’s no telling how far it will go.

Among the tickers that held investors’ attention on Tuesday were also Alkaline Water Company, Inc. (OTCBB:WTER) who keep sliding after a half-hearted pump in late September brought the price near $0.90. WTER closed 12% down and stopped at $0.50. The latest Awesome Penny Stocks pump job – Pacific Clean Water Technologies, Inc., f/k/a Unseen Solar, Inc. (OTCMKTS:PCWT) underperformed once again, closing nearly 13% down on over 6 million shares traded.