Chew Maker Livewire Ergogenics, Inc. (PINK:LVVV) Touted by Best Penny Newsletter
In case you are wondering what is Best Penny Newsletter’s newest pumped pick, you might have een taken by surprise as the stock in mention is Livewire Ergonetics, Inc. (PINK:LVVV), a maker of energy chews. What you should not be surprised by, however, is the poor market performance LVVV shares have experienced since last Thursday.
Indeed, the first batch of promotional emails in support of LVVV started reaching our database halfway through the Dec. 6 session. What followed was a continual and heavy downpour of new mails touting the same stock. Divided into two paid pumps of $50,000 and $100,000, respectively, the campaign has so far shown no signs of slowing down. In terms of success, though, it is more or less finished.
Last Thursday, LVVV closed trade at $0.151 per share, up 7.86% from its pre-promo close, on a volume of 12.9 million. Just as investors expected that LVVV could build up on the momentum on Friday, their hopes were eventually dealt a blow as the stock crumpled to the ground losing a whopping 50% in value on a turnover of 6.9 million. The latter marked a 47% decrease in investors’ interest in trading this stock, which in turn makes the occurrence of any future positive runs higly unlikely.
Established in 2008 in Anaheim, LVVV currently sells its energy-boosting chews in a number of retail outlets. Yet, the company is still far from styming its energy drinks competitors, as far as its revenues are concerned. LVVV closed the quarter ended Sept. 30, 2012 with:
- $4,536 in cash
- $110 thousands in assets, of which $79K (72%) in inventory
- net deficit of some $480 thousand
- sales revenue of $26K
- net loss of $916K for the nine months ended Sept. 30, 2012.
As it is, LVVV‘s inventory reserves are almost 3 times higher than the actual amount of chews sold during the latest quarter on record. Is this ratio adequate, and is it indicative of expectations for future drastic market expansion?
Last but not least, LVVV is by far not the first company to fall under Best Penny Newsletter’s promotional grip. The stocks mentioned below have also suffered great losses of market value due to pumping activities carried out by the same promoter.
- AGR Tools, Inc. (PINK:AGRT), on the one hand, was pumped in late-May for $100 thousand. The campaign brought a first-day profit of 272% but has since depreciated by a staggering 94%.
- Viking Minerals, Inc. (OTC:VKML), on the other hand, was touted on Sept. 6, again for $100K. The campaign resulted in a single-day loss of 7%. The stock would eventually wipe off 78% of its market value in less than one month.