Lot78, Inc. (OTC:LOTE) Inspires Record Buying

With a new outdoor season approaching, Lot78, Inc. (OTC:LOTE) has timed well its international expansion, selling high-end urban clothes to 165 countries. But the London-based company also benefits from the American OTC market, where it has found a vehicle, a previously depressed ticker, to give it exposure to investors’ funds. The introduction of LOTE, combining an emailed pump campaign and a series of press releases, has created a continuous buying spree, with record buying on Tuesday. The price climbs cautiously, reaching $1.52 with around 10% gain.

Despite an active website, so far the contribution of Lot78 does not seem to boost the general financial condition of the entire company, showing:

• Zero revenues

• $38,000 net loss

• Zero cash, $1,000 “goodwill” assets

• $84,000 total liabilites

With price tags at the Lot78 store starting around $100 for basic items, and with other outlets selling the collection, it is puzzling where the revenues went, or why they were not reflected in the latest report. The company claims it has a potentially profitable presence on a prominent website, shopbop.com, yet the presence is just four simple outfits, as of the writing of this article, hardly a bid for red-hot sales.

But any fashion success will lag behind the developments in the stock’s graph, which now seems to be going on a strong trend, meaning also it is threatened by a correction which could happen at any moment. Given that Lot78 was bought in a stock deal, insider selling may be triggered at an unknown moment and depress the price.

Another big red flag for this promoted company is its US address, a small house that hosts several penny stock companies:

• One Clean Planet, Inc. (f/k/a Singular Cheft Inc.) (PINK:SGUFD)

• Homie Recipes Inc (OTC:HOMR)

• Vacation Home Swap, Inc. (PINK:VCHS)

• Kunekt Corp (PINK:KNKT)

• Eco Energy Pumps, Inc. (PINK:EEPU)

• Gilla Inc (PINK:GLLA)

• Numbeer, Inc. (PINK:NUMB)

• Victory Energy Corp. (VYEY)

The business and identity switch from Bold Energy, Inc: BOLD to Lot78 happened after a reverse buyout, paid in stock, of which there are insider holdings of 18 million shares. Thus, LOTE is a vehicle for the business of the urban fashionistas, with the possibility of future gains. But the most prominent boost came from a slew of paid promoters, with a budget of $60,000. The main promoter was closely held Global Media LLC, and the pumpers make a formidable team: 1-2-3 Stock Alerts, Penny Stock Circle, Penny Stock Players and The Stock Scout . The general gains in price have been modest, given