Liberator Medical Holdings, Inc. (OTCBB:LBMH) Soars on Cash Dividend, Share Buyback Announcement
In Friday’s relatively slow market Liberator Medical Holdings, Inc. (OTCBB:LBMH) soared past other stocks, shifting record volume of nearly 700 thousand shares. After a month of barely moving up or down the charts, the stock surged 21% yesterday and closed the session at $1.20 per share.
The movement was likely triggered by a press announcement from LBMH, who declared a cash divident amounting to $0.03 per common share, as well as a buyback of about 1 million common shares. The dividend is payable in the second week of June and will be the second for this year.
The announcement obviously got traders very excited about LBMH and the share volume yesterday was unprecedented. The number of shares traded was small comparable to some more diluted enterprises on the OTC market but LBMH is a company that has briefly dipped under 60 cents per share just once in the last three years. The latest quarterly report from LBMH contains the following figures:
- $7 million in cash
- $6 million in current liabilities
- $16.7 million in quarterly sales revenue
- $1.4 million in quarterly net profit
It’s particularly refreshing to see an OTC-traded business that boasts such healthy assets and manages to turn a seven-digit net profit instead of a gaping recurring loss. The fact that the company has not really been promoted by pumpers, the considerable cash resources the company can fall back on if need be, as well as the quarterly revenue that has more than doubled year-over-year can give investors some additional confidence. LBMH also had just 52 million issued and outstanding common shares as of May this year.
Despite the solid financial backdrop, yesterday’s surge in stock price may prove unstable, simply due to its scale and its sudden nature. Those considering LBMH as an investment opportunity need to keep into account that chasing stocks is almost never a wise thing to do and that it may be better to wait for the excitement spike to cool down a little before making a move.
Other big gainers on Friday were Vapor Corp. (OTCMKTS:VPCO) and First Mariner Bancorp. (OTCBB:FMAR).
