Liberator Medical Holdings, Inc. (OTCBB:LBMH) Manages to Sustain Climb
The huge run up the charts in mid-June, after Liberator Medical Holdings, Inc. (OTCBB:LBMH) announced its second cash dividend and a share buyback plan, may have left some a little fearful of a swift retrace. However, the company proved more than capable of sustaining its price levels, climbing a further 17% from the first spike.
We covered LMBH shortly after their first explosive surge on the dividend and buyback news. Even though there have been no new press releases from the company and the daily share volumes decreased significantly since the spike, the stock price proved sustainable and LMBH continued its climb. Between June 15 and today the company logged only two red days, marking a minor retrace, closing a cumulative 17% up from the original surge and a solid 30% up from the price levels before the dividend news. The share buyback plan was later detailed to encompass 1 million shares of LBMH.
LBMH is a supplier of medical products under the Medicare program. The company boasts financials that are refreshingly solid for an OTC-listed business. Here is what LBMH had to show as of their last financial report dated March 31:
- $7 million in cash
- $6 million in current liabilities
- $16 million in quarterly sales, up $2 MM year-over-year
- $1.4 million in quarterly net income, twofold increase year-over-year
The 52 million shares of common stock LBMH had issued as of early May put the company’s market cap at $73 million. Unlike many other OTC and Pinksheet companies LBMH boasts a clean track record, free of any pump campaigns and stock promotions. Perhaps the only significant potential issue before the company and its business is a sudden legislative change in the health system affecting the Medicare program in particular. This could potentially hurt LMBH sales if the way the program distributes money is significantly altered.
Despite the short session on Wednesday, some other stocks managed to shift significant dollar volume. Among those were Generex Biotechnology Corporation (OTCMKTS:GNBT) who closed 12% up. Awesome Penny Stocks pump pick Xumanii, Inc. (OTCMKTS:XUII) also managed yet another green close and ended the previous session 10% in the green.
