Lot 78, Inc. (OTCMKTS:LOTE) Above $18, Buying Slows Down
Lot 78, Inc. (OTCMKTS:LOTE) is taking stock as it stands at a dizzying height of $18.35 after a steady climb in the past week. The company is worried about unauthorized offerings and short-selling that might depress the price. As a remedy, LOTE is considering a 4-for-1 share split. The last paid promotion for LOTE was on May 22nd, and the stock responded by jumping more than a dollar. 
But it seems the concerns actually help the ticker, especially when they are presented as widely-spread press releases. LOTE is not ashamed to remind investors of itself with regular news, thus boosting the trend, and it may well fulfill its prophecy of rising to $20. 
Still, buying is weakening as the price moves higher, and the jitters caused selling on a few separate days, when some investors decided to lock profits. Still others hang on, and enjoy the boost from the latest press release, when LOTE announced changes to its bylaws and year end dates. The date is moved to September 30th, from July 31st, giving some extra time to LOTE perhaps to rally supporters.
Also, the latest quarterly report gives a clearer picture of the company’s name change effect and the contribution of the fashion collection company:
- $140 cash
- $87,220 total current assets
- $1.3 million total current liabilities
- $150,759 revenues
- $83,399 net loss
As we have said before, the product line of LOTE is a bit overpriced and sales do not seem promising, despite the hype that the brand is offered on several designer online stores and in physical retail chains. The results are not a big improvement over the filings of the former vehicle company.
May 15th was the cut-off date for the split, as every share of the company will equal four post-split shares. The split still awaits approval. In addition, LOTE will increase the number of authorized shares from 75 million to 350 million.
The latest pumper for LOTE was Wall Street Buzz, advertising the steep climb where $8 was thought impossible, but a price of $19 was easily reached. The upcoming weekend may be a cause of selling, but also the reminder from the pumpers that it might be time for some profit-taking. The latest email is for unknown compensation, probably free, as Wall Street Buzz tries to add to its success record.
Wall Street Buzz added to the hype for another penny stock, Plandai Biotechnology, Inc. (OTCMKTS:PLPL). It’s still unknown if PLPL can stay around 50 cents after exploding from single-cent prices, but promotions certainly help. While LOTE may hold more potential to add to its price based on inertia and hype, the sentiment may soon turn, so stay away unless you can afford to lose a large part of your investment.
