Lot 78, Inc. (OTCMKTS:LOTED) Clings to $1.46, For Now
After a drop to a temporary bottom of $1.30, Lot 78, Inc. (OTCMKTS:LOTED) seems like it’s not ready to go into freefall, and tentative buying helped the price cling to $1.46. With no news and new promotions, this means LOTED is facing a decisive Monday, with a possibility to try out a higher price, but also a strong falling trend weighing on the stock. 
Fundamentally, the awesome climb of LOTE pre-split, and of post-split LOTED was on the back of the reputation of a small London-based fashion company. The collection itself could never rile up such an amazing interest, but with a $2.5 million paper mailer and a wide campaign of emails and press releases, the vehicle company easily reached above $23. The split staved off for a while the expected drop. 
LOTED indeed wiped out three-quarters of its value in a few short days, after the promoters went silent at the end of May, and no more press releases supported the price. The recent move upward does not seem planned, it’s just a last-ditch attempt at valley-buying. The next few days will show how the LOTED yarn unravels.
As for finances, we mentioned several times the basic data were in disproportion to what we saw on the markets:
- Zero cash and cash equivalents
- $209,000 revenues
- $300,000 operating loss
- $84,000 total liabilities
While there are little official releases from Lot 78, discussion forums keep mentioning deals with big retail chains, which are not entirely untrue- Harrod’s magazine mentions the brand in its collections magazine. But this background activity may be one of the factors to move LOTED. In general, the mood is more subdued and there are more doubts, now that it is clear this company was mostly in for the promotion.
Another mostly inactive company that flew up immediately after the May 29th promotion is Montalvo Spirits, Inc. (OTCBB:TQLA). The latest email on June 12th left the graph somehow jittery, with interest clearly waning after a few days of silence from the promoters. Northumberland Resources, Inc. (OTCMKTS:NHUR) is another example of a ticker that crashes almost immediately after the end of a promotion. With the last email on June 10th, NHUR slid down almost 50 cents, from $1.50 to a dollar.
While a promotion is an excellent chance to access an actively traded ticker, the fallout means it’s best to stay away unless you can also absorb the sharp drop in both price and trading volumes.
