Limitless Venture Group Inc (OTCMKTS:LVGI) Taking on Water

Limitless Venture Group Inc (OTCMKTS:LVGI) logged three consecutive red sessions and wiped out more than 50% of its market cap. That is not the sort of performance expected from the ticker, especially considering the fact that on Tuesday, the company announced a new hemp-derived product.

There’s still plenty of buzz around the message boards and social media, but there’s no shortage of disappointed investors as well. Which, by the way, is nothing new for LVGI.

Back in June 2013, for example, the former CEO, Mr. Peter Scalise III, wrote a letter to the shareholders and told them that everything is ready for the products to hit the market during the third quarter of 2013.

Five months later, LVGI published the report covering the aforementioned quarter and it showed that Mr. Scalise’s calculations have been a bit off. Here’s a summary of the most important figures as of September 30, 2013:

• cash: $4,216
• current assets: $9,216
• current liabilities: $188 thousand
• ZERO revenues
• quarterly net loss: $421 thousand

At the moment, Mr. Scalise is saying once again that some products are hitting the shelves. LVGI issued a press release a couple of hours after Wednesday’s opening bell which informed us that the G.E.A.R. Shock Series product line should appear in a large number of stores around the US within the next week.

Early trading today suggests that the market is reacting positively. About half an hour after the opening bell, LVGI is already 16% above yesterday’s close. At nearly 25 million shares shifted in just thirty minutes, the trading volume is also shaping up to be interesting. But will Mr. Scalise fail to keep his promises like he did nine months ago?

Actually, that question is not really that important. In November, the GEAR subsidiary was spun off and right now, even if it starts generating meaningful revenues, they will not appear in LVGI‘s financial statements. According to a press release from January, Mr. Scalise is no longer a part of the public company as well.

The shareholders will need to place their hopes with the SLAM alcoholic shots and the newly announced HempCore health product. Unfortunately, there’s been no news around either of them which means that today’s run, like the one from last week, is caused by nothing more than hype and excitement.

If you still believe that, despite the terrible financial statements and the broken promises from days gone by, LVGI is about to succeed, you should carefully time your trades and avoid investing unaffordable sums.

LVGI wasn’t the only OTC-listed ticker to drop during yesterday’s session. Red Giant Entertainment Inc (OTCMKTS:REDG) also slipped and wiped out around 14% of its value while shifting more than $744 thousand worth of shares. Titan Iron Ore Corp (OTCBB:TFER) had a terrible day as well. It lost more than 40% of its market cap while logging a dollar volume of nearly $2 million.