Lot 78, Inc. (OTCMKTS:LOTED) Deepens Losses, No Sign of Publicity
So far, Lot 78, Inc. (OTCMKTS:LOTED) is a study in self-fulfilling prophecies. This astonishing ticker burst to obscurity and climbed above $20, fulfilling its own promise. Now, the ticker is aswering to the expectations of analysts, which predicted a slump of 75% or more, mostly because the company’s claims of business success were mostly baseless. 
LOTED marks a four-day losing streak, deepening its losses on relatively low volumes. The ticker shed more than 37% on Tuesday, running to a low of $2.39. This is already significantly removed from post-split peak of around $6. The sales are still low-volume, and don’t suggest that a crowd of naked short interest holders are trying to push the price down. LOTED was pestered by those naked short interest speculators, who borrowed stocks and had an interest in pressuring the stock down. Thus, they could return their stock debt by buying up bargain shares.
But most probably, LOTED was left to drift on its own, after being milked for all the ticker’s worth. The $2.5 million campaign with a paper mailer, the email hype and the press releases moved LOTED disproportionately. Previously Bold Energy, Inc. (BOLD), a regular and little-famous pink sheet, gave exposure to a London-based fashion house, thus allowing itself to advertise a legitimate, curious and successful-looking business.
The recent results for LOTED served as just another reminder keeping up the ticker a while longer, although recent climbs resemble more and more a dead cat bounce. The fashion house has limited sales, as reflected in the latest filings:
- Zero cash and cash equivalents
- $209,000 revenues
- $300,000 operating loss
- $84,000 total liabilities
Whatever happens to the Lot 78 brand, it will be entirely removed from the success or failure of the ticker. So far, the brand spreads its limited, though high-quality collection to several online and real-space stores, with small-scale sales. But if we take the history of promoted stocks, most probably LOTED will slide even mode and sink into obscurity for months or years, before any attempts at further publicity are made.
While LOTED may rebounce briefly, it is best to stay away unless you are ready to lose your investment in whole or in part.
