Lifelogger Technologies Corp (OTCMKTS:LOGG) Makes A Strong Bounce
In just three sessions the stock of Lifelogger Technologies Corp (OTCMKTS:LOGG) crashed from over 50 cents to a low of just $0.163. In other words the company obliterated nearly 70% of its value. The disastrous performance was sparked by a rather negative SeekingAlpha article in which the author listed the numerous red flags around the company but the final blow to the stock was dealt by the quarterly report that was filed last Thursday. It showed that LOGG’s financials at the end of March were still extremely grim:
• $81 117 cash
• $89 thousand total current assets
• $55 392 total current liabilities
• ZERO revenues
• $290 thousand net loss
The fact that LOGG have not published a new press article in nearly two and a half months made the situation even worse.
When a stock suffers such a rapid depreciation however it usually bounces from the new lows and yesterday LOGG did exactly that. Picking up speed in the later portion of the session the stock managed to move upwards by over 42% and was sitting at $0.238 by the time of the closing bell. Will this turn into a more prolonged recovery or was it nothing more than a dead cat bounce though?
Well, LOGG did boost their financials by selling 348 thousand shares for $150 thousand in proceeds but even with this increased cash position the fundamentals of the company simply cannot support the current market cap of over $19 million.
Not to mention that in an 8-K form filed yesterday LOGG issued a new corporate presentation that confirmed some of the negative speculations that have been floating around on investor message boards. According to the filing the company has indeed pushed back the deadlines for its products yet again.
The software platform developed by LOGG was supposed to enter private beta testing by the end of January with an open beta to follow in May. Now, however, the company intends to start the private beta by the end of the second quarter with the open beta scheduled for the third quarter. As for the wearable camera, well, the presentation says that the final prototype is ready for testing but no concrete dates have been mentioned.
How willing are you to put your money in a company that after several rather significant delays is months away from having a completed product, reports depressing financials and is still trading at an overly-inflated prices despite the massive losses from the last few sessions? It is up to you to decide.
