Lamperd Less Lethal Inc (OTCMKTS:LLLI) On Its Way Down Again
If there’s one thing that the riots in Ferguson, Missouri and Berkeley, California were good for, it is Lamperd Less Lethal Inc (OTCMKTS:LLLI)’s market value. The company managed to add about 20% to it while the news was hot, but now it is headed down again.
Truth be told, LLLI was a dubious choice even for opportunistic traders, as its movements are unpredictable even by the standards of the volatile OTC Markets. As with all hype-driven jumps, there’s simply no telling how far a ticker could go before it crashes badly.
The only thing that was certain in this case was that the ticker’s was going to crash, and soon. Why?
Because hype can push a company’s market value up, but if the company’s fundamentals are not solid, this gain would be artificial, and thus – non-retainable. And LLLI is anything but a financially solid company. Its latest financial report showed the following figures
- NO CASH!!!!!
- Current assets – $226 thousand
- Current liabilities – $466 thousand
- Revenue for the first three quarters of 2014 – $255 thousand
- Net loss for the first three quarters of 2014 – $636 thousand
The news that got investors excited about LLLI once more was the announcement that the US government will be spending about $75 million on equipping police officers with wearable cameras.
But how can a company with NO CASH on hand and $226 thousand in total current assets possibly capitalize on this opportunity?
Cases like this are the reason why investors should do due diligence and not give into hype when choosing which stock to commit to.
