Lot 78, Inc. (OTCMKTS:LOTED) Won’t Stop the Freefall

Just as the climb for Lot 78, Inc. (OTCMKTS:LOTED”>LOTED) was relatively calm, so is the fallout, so far a slow deflation rather than a giant one-day crash. The ticker slid down to $1.14, losing a bit more than 12%. The previous temporary low was at $1.30, after which LOTED”>LOTED even added a few percents before resuming the downward trend.

What is happening now to LOTED”>LOTED is entirely predictable- absent any new promotions, the stock is left to take its own direction with the last risk-takers trying to benefit. While in active promotion, LOTE shot up from a dollar to above $23, followed by a split where the highest peak reached about $6. About a month ago, the predicted fall for this heavily promoted stock was at least 75%, a level easily reached.

While the Lot 78 brand may be doing its own thing in London, the vehicle OTC company moved independently. The financial data show the contribution was rather small:

• Zero cash and cash equivalents

• $209,000 revenues

• $300,000 operating loss

• $84,000 total liabilities

The brand keeps getting featured on the Internet and in physical stores, but there, it is just another brand among many, with little to make it stand out beside a $100 price tag on T-shirts.

Another strong contender with a more solid business outlook, Western Graphite, Inc. (OTCBB:WSGP), is also showing great volatility in its stock. The company was last promoted in the middle of May, so the fallout was also expected and is quite similar to that of LOTED”>LOTED.

Myos Corp. (OTCMKTS:MYOS), a.k.a Atlas Therapeutics Corp., is another ticker on a wild upward trend, though one rising from single-digit cents to 21 cents. Such companies tend to create a momentum of attraction, promising that the trend would continue. But whatever hype fuels the rise of the stock ends at some point, and leads to a sharp correction of the disproportionate price. MYOS also changed name and identity, like LOTE, before making the big bid.

In the case of LOTED”>LOTED, the game seems to be over, the gains gone, and the paper mailer and emails a thing from the past. The company does not even speak of its fashions anymore. So while a rising promoted stock may promise a lot of gains, it is best to stay away unless you can also support the falls, which in the case of LOTED”>LOTED are nearly 80% from the peak levels.