Lustros, Inc. (OTCMKTS:LSTS) On The Way To Recovery
For most of the year the stock of Lustros, Inc. (OTCMKTS:LSTS) has been going in only one direction and that is down. LSTS began 2013 trading for more than a dollar per share but at the end of October they fell to just $0.14. But now it seems that sentiment among investors have begun to change.
The recent positive shift in the stock’s performance might have something to do with the fact that LSTS have finally started selling their copper sulfate. In October they executed the first sale to a buyer in Buenos Aires, Argentina. This was a major event for the company but they nned to do much better in order to return back to price ranges of above a dollar. And the financial results revealed in the latest quarterly report for the period ending September 30 raise some concerns:
- $179 thousand
- $1 million total current assets
- $3 million total current liabilities
- $66 thousand
- $1.4 million net loss
The report didn’t cover the recent operations of the company but a negative working capital of $2 million is quite a serious problem. And the amount of funds flowing into the company is still going to be negligible compared to their losses at least for some time. This means that LSTS is still going to rely mainly on the issuance of new shares further diluting their common stock. The management of the company has even resorted to increasing the authorized number of shares from 100 million to 250 million.
If LSTS continues to progress with their business plan a further surge up the stock chart is not unlikely. If you are considering buying their shares be sure to take into account all the risks associated with the company.
Yesterday Fresh Healthy Vending International, Inc. (OTCBB:VEND) continued to slide losing another 14% and dropping to $2.60 per share. At the start of the month the company was traded at much lower levels of $1.5 so there is plenty of room for further corrections. The newsletters involved in the pump for Nevada Gold Corp. (OTCBB:NVGC) seemed unfazed by the massive 36% crash last Friday and are releasing more and more email alerts pushing the company back up to $0.42 per share.
