Lot 78, Inc. (OTCMKTS:LOTED) Quietly Slips Away
Lot 78, Inc. (OTCMKTS:LOTED) is making a quiet retreat, with three days of relatively quiet selling dragging down the post-split shares to $3.82. So far, LOTED has had other periods of several days of sliding, but managed to recover some lost ground. Still, since the end of May, the ticker said goodbye to its $6 levels and slowly but surely may wipe out a lot of optimistic investments. 
We have seen no new promotions, which were the main support of this company. The press releases are fewer, the company is just reposting its financial results, which are less than stellar:
- Zero cash and cash equivalents
- $209,000 revenues
- $300,000 operating loss
- $84,000 total liabilities
The paper mailer that spread slowly for weeks helped boost interest, but now it seems the stable support is gone, and the $2.5 million compensation for the pump spent away already. The prognosis for a freefall in LOTE is for a loss of 75%, which given the large retreat may not be a far-away target.
With such a grim prognosis, it’s hard to tell if pumpers will be ready to take up this ticker again before it hits rock bottom, or if press releases will be renewed. The London-based fashion company is legitimate, if still not widely known. But whatever its fashions, they were incomparable to the promotional hype. There was some talk that LOTED could repeat the cult success of other brands taken up by the TV or movie industry, but this also a part of the promotional promise. While LOTED has a feisty young founder and chief designer, Ollie Amhurst, he is not feisty enough for the American OTC markets.
LOTED is currenly lying low, after its limb incited investors to buy naked short interest, borrowing stock in the hope of a fast fall and an easy opportunity to replace the stock loan with shares bought at a lower price. This also did not occur, but was an ongoing concern for LOTED as its pre-split shares reached $23.
The past month saw selling outstrip buying, with 11 days of selling vs. 10 days of net buying, more or less similar in volumes. This seems like cautious behavior around LOTED, which after a long smooth rise is starting to get choppier, offering short-term gains for fast investors, but threatening to slowly erase past positions. It is best to stay away unless you can afford to lose on the inevitable corrections.
