Liberator Medical Holdings, Inc. (OTCBB:LBMH) Takes Another Step Down
Yesterday Liberator Medical Holdings, Inc. (OTCBB:LBMH) dropped another 10% for a total of 24% decrease from the record values the stock price reached last Friday. Share volume remained furious, with over 750 thousand LBMH shares changing hands over the last session.
The initial surge that sent LBMH flying took place as the company announced a $0.03 cash dividend and a buyback of 1 million shares of their common shares which were already at a modest count, at least by OTC standards. The initial run slowed down only briefly, before LBMH resumed climbing and displaying chart performance that is almost miraculous for an OTC stock that is not pumped. Luckily, no promoters decided to latch themselves to the runner.
Despite the lack of pumpers, which is a positive for the company, the ticker seemed to have run a little too hot for its own good and after very nearly breaching $2.00 per share, Monday saw LBMH shift in reverse and chart large red swaths. Monday marked a 10% drop and yesterday’s session sent the price nearly another 15% down.
LBMH happens to be one of the more solid OTC enterprises, with significant cash reserves, quarterly revenues in the millions and a bottom line of consistent profit. Here is how LBMH looked as of the date of its latest quarterly for the period ended March 2013:
- $7 million in cash
- $6 million in total current liabilities
- $16 million in Q1 revenues
- $1.4 million in Q1 net profit
The drop in share price is just as unpleasant as it was expected. Historically, such explosive runs have been particularly difficult to sustain, especially when they happen so fast with no flatter periods of calm in between. Shareholders could have decided to rake in some profit, as the percentile run of the stock was considerable. LBMH‘s price is by no means destroyed, as even after yesterday’s drop, it’s still about 45% up from the levels it occupied for the three months.
Smaller biotech play Bio Matrix Scientific Group, Inc. (OTCMKTS:BMSN) went up 12% yesterday, still struggling under half a cent. The spotlight in yesterday’s session, however, was on Xumanii, Inc. (OTCMKTS:XUII) who, after a long run of mostly Awesome Penny Stocks pumps, crashed 44% on dollar volume of over 35 million.
