Limitless Venture Group Inc (OTCMKTS:LVGI) Tries To Make A Comeback
Limitless Venture Group Inc (OTCMKTS:LVGI) got the approval for the new name and ticker symbol just eight months ago and it’s fair to say that since then, the stock performance has been absolutely horrific. Active trading didn’t really begin until May but once it did, we saw that the ticker was comfortably standing above the $0.10 per share mark.
There were some signs of a slide, but, for a newly born penny stock, the performance was quite consistent. Then September came and it all fell to pieces. The first five sessions of the ninth month ended with some ugly losses and when the dust settled, shareholders were looking at around 84% in losses after just one week of trading. The ticker took some more hits during the next couple of sessions and the management team decided that it’s time to act.
They did something quite unusual and issued an announcement in which they basically said that they were sorry for the ugly chart movement. They claimed that there’s nothing they can do about it and supposed that a note holder has unleashed quite a lot of stock on the open market, thus depressing the price. This seems like a plausible scenario and we’re quite sure that, if this is indeed what happened, the mysterious note holder took advantage of the paid promotion that was running for LVGI at the beginning of September.
The press release made it look like the management team were completely innocent but despite that, the ticker continued sliding. What is the reason for this?
Well, we can’t be 100% sure, but we’re quite certain that not all of the people take on the management team’s side. The authors of this entry on RipOffReport.com, for example, probably disagree with the excuses listed in the press announcement. We’ll leave it up to you to decide whether the people currently at LVGI‘s helm are right or not but in the meantime, we’ll list some facts that are definitely worth considering before putting your money in the ticker.
Let’s start with the financial situation. On October 1, LVGI published the annual report covering the twelve months that ended on June 30 and it’s fair to say that it fails to reflect all the optimism coming out of the company’s press releases from the last couple of months. Here’s a quick summary of the most important figures:
- cash: $4 thousand
- current assets: $9 thousand
- current liabilities: $1.4 million
- no revenue
- net loss: $10 million
It’s pretty clear that with these sort of financials, success for LVGI is anything but certain, especially with their ambitious marketing strategy which will require quite a lot of investments over the coming months.
What’s more, the company CEO, Mr. Peter Scalise III, has already tried his hand at running a publicly traded company and it’s quite clear that he wasn’t all that successful. As you can see from this filing, back in May 2011, MOJO Organics Inc (OTCMKTS:MOJO) acquired a private company called Specialty Beverage and Supplement, Inc. (SBSI) pursuant to which, Mr. Scalise became MOJO‘s CEO. Just five months later, SBSI was spun off and LVGI‘s current CEO was relieved of his duties.
The possibilities of the same thing happening again are hard to estimate, but one thing is for sure – if it does, the ticker will suffer badly. There certainly is some room for corrections – LVGI registered a couple of consecutive green sessions last week (also aided by Epic Stocks’ free alert from Thursday) and the share price currently stands at $0.0036. It will be interesting to 
see which direction it will take on next.
Other notable movers during Friday’s session include Swingplane Ventures, Inc. (OTCBB:SWVI) whose stock crumbled by as much as 40% and Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) who registered their fifth red day in a row.
