Liberator Medical Holdings, Inc. (OTCBB:LBMH) Moves Back Slightly
At its dizzying peak, Liberator Medical Holdings, Inc. (OTCBB:LBMH) is starting to correct, losing just shy of half a percent on Thursday, and opening tentatively lower on Friday. LBMH stood at $2.43 on selling volumes above $673,000. Still, LBMH is at a three-year peak and there is much talk of a needed correction. In early trading, LBMH headed down to $2.23. 
The company is not promoted, and there are no news since the announcement of the stock dividend in the early days of September. So most of the rise in LBMH is self-driven, and momentum has been high in the past weeks.
The biggest strength of LBMH is that it relies on a Medicare contract for its revenues. This makes LBMH different from other medical companies in that it has a ready market and is not looking for success from ground zero. While lesser quality stocks may make spectacular gains, LBMH is one of those companies that manages to achieve this without blatant pumps, and the interest is not in such a high disproportion to the company’s business.
So far, LBMH is equipped with:
- $10,610 million cash
- $23 million current assets
- $8.3 million current liabilities
- $2 million quarterly net income, up from $676K for the same period in 2012
For now, the only problem for LBMH is remaining attractive enough to continue the climb, as there are no guarantees that this price range is sustainable.
Here is a story of a company that makes much less, but comes up with big promises. Nano Viricides, Inc. (OTCMKTS:NNVCD) corrected significantly, but moved again toward a $5.70 post-split price.
Provectus Pharmaceutical, Inc. (OTCMKTS:PVCT) is charting a similar trend, breaking through the dollar level as it started from 65 cents a few days back. The company has been active all along, though more so in 2013, where it is a shot from its heights around $1.30.
Pharmaceutical and medical companies are always available among the most active penny stocks, but often cost investors a large part of their savings. If you need to pick a ticker at its peak, keep in mind that a correction is always probable, and LBMH showed quite a dramatic streak in the red at the end of August.
Another piece of news from LBMH may further boost trading, though the dividend was quite a mover and will hardly be surpassed. While LBMH is attractive for the good reserves and rising earnings, it is still best to avoid investing sums that you cannot afford to lose on a sharp correction.
