Lot 78, Inc. (OTC:LOTE) Jumps by a Third
Over a few days, Lot 78, Inc. (OTC:LOTE) has proved its mettle, and shows even stronger growth- more than 29% on Tuesday to $3.56. It seems the trend of the fashion company is self-amplifying, and the high price may hold on for a while. While the penny stock vehicle seems a shaky foundation, Lot 78 is showing real potential. The gains are picking up in pace- the trend started with slow climbs of 8-10 % daily, and expanded to more than 20% per day. 
Yet this ticker invites caution. The company is based in London, and we don’t know when we would be able to see credible results. Lot 78 has a genuinely original, but limited collection and it is doubtful if the sales could match the market cap, which is now upward of 200 million dollars. 
In more than a month, there were only 7 days with minor drops in price, and in the past weeks, buying volumes move upward again. The company proved it is capable of moving actively and mentioning every milestone in press releases, so this may help keep the interest. With relatively low 57 million shares outstanding and daily volumes around 1 million shares, interest is what keeps LOTE from falling on sales.
So far, the insiders don’t seem like potential sellers, especially the CEO Ollie Amhurst, who seems to have a skin in the game and is really devoted to fashion. Other risks for LOTE include a repeat promotion, now that the ticker is so attractive, which may bring in short-term investors and cause a correction.
Formerly, LOTE was traded as Bold Energy, Inc. (BOLD), and the company left with the following financial profile:
- Zero revenues
- $38,000 net loss
- Zero cash, $1,000 “goodwill” assets
- $84,000 total liabilities
The last promotion for LOTE came on March 14th, and the pumpers, 007 Stock Chat, suggested that the company may be the target of an acquisition. This happened around the time LOTE traded around a dollar. The other positive expectation was that Lot 78 could become an overnight fashion hit and take the stock to unprecedented fame and interest.
While it is possible that LOTE can continue upward and achieve even higher levels, past performance is in no way an indicator for the future, so it is best to estimate if you could afford the loss of a correction, if the promises do not materialize. Currently, 007 Stock Chat has moved on to another hot trend, medical marijuana, and is touting the sector’s bellwether, Medical Marijuana, Inc. (OTC:MJNA).
