Liberator Medical Holdings, Inc. (OTCBB:LBMH) Applies Brakes on Slide
After slipping in double digits for two consecutive days, Wednesday’s session saw Liberator Medical Holdings, Inc. (OTCBB:LBMH) slow its descent down the chart and close just 4% in the red, on share volume that was much tamer.
The two previous sessions that sliced about a quarter from the stock’s price could have been a panic reaction from shareholders who were getting anxious about the price reaching such heights, deciding not to take any further risks and cashing out with attractive gains.
LBMH had an amazing run, and what is more, one that happened without any stock pumps. In fact LBMH had never been targeted by stock promoters, which is always a positive for an OTC company. The stock’s initial surge from mid-June was fueled by a press announcement informing shareholders of a $0.03 cash dividend as well as a 1 million common share buyback. The first spike happened on heavy volume, then the stock climbed steadily on quieter days.
Even without hyped up press releases, LBMH managed another amazing run in the second week of July, with volume picking up again and the price gaining 35% in a few short days. With the stock testing $1.90 per share, 100% up from its values just a month earlier, traders may have decided to scoop their cards and rake in the cash, which could have been the reason for the two million-dollar volume days that pressed LBMH down.
Yesterday share volume returned to steadier numbers and the price action slowed down as well, even if the stock closed down. From this point on, LBMH will have to prove its mettle and try to stabilize at comparable levels. The company has a significant cash reserve and logs seven-digit net profits, as well as a dedicated shareholder base, so its chances of success are not too bad.
Other stocks that generated significant dollar volume in yesterday’s session include 22nd Century Group, Inc. (OTCMKTS:XXII) who closed 6% up, gaining $0.27 in just three sessions. Xumanii, Inc. (OTCMKTS:XUII), who have just recently been stamped with a Buyer Beware skull and crossbones on OTCMarkets, partially recovered from a huge 44% crash and closed the last session 25% up.
