Lifelogger Technologies Corp (OTCMKTS:LOGG) Sinks as Excitement Fades Away
Lifelogger Technologies Corp (OTCMKTS:LOGG) suddenly became one of the more interesting penny stocks at the end of last month. First, several outfits started drawing parallels between the wearable cameras offered by the OTC company and the products of one of the leaders in the industry – GoPro Inc (NASDAQ:GPRO).
Later, the riots in several US cities drew a lot of attention to the problem of police brutality, and none other than President Obama said that maybe, if law enforcement officers have wearable cameras, abuse of authority shouldn’t be that much of an issue. Mr. Obama even called for a $75 million funding for his project and all of a sudden, people thought that LOGG‘s cameras could be just what US policemen and policewomen need.
If you’ve been around penny stocks for long enough, you’d know that these sort of catalysts are more than enough to send an OTC ticker flying high and, not surprisingly, this is exactly what happened to LOGG. Heavy volumes pushed the ticker from under $0.50 per share on November 14 all the way to over $0.73 on December 5. Unfortunately, the performance since then has been rather horrific.
LOGG registered three consecutive red sessions at the beginning of last week during which it wiped out almost a quarter of its market cap. On Thursday, it tried to bounce back up, but on Friday, it slipped again which means that the starting point for the new week stands at $0.56 per share.
So, what went wrong?
Let’s start with the comparison between LOGG and GPRO. While both companies are in the same industry, this is just about the only thing that ties them together. During Q3 of 2014, for example, GPRO registered around $280 million in sales and a net income of about $14.6 million. LOGG, on the other hand, recorded just $92 thousand in revenues and a net loss of around $18 thousand.
The more forward-looking investors among you will probably argue that the wide gap in the financial results is caused by the fact that LOGG is still a new company. Some might even say that if President Obama decides to equip police officers around the country with Lifelogger‘s cameras, things will look quite a bit different.
That’s true, but if Mr. Obama is to choose LOGG over the rest of the competition, LOGG will need to ready with their product product. And as of right now, they aren’t. What’s more, the company filings suggest that there are a few delays and this is definitely causing some of the more risk-averse investors to walk away.
So, all in all, it’s not that difficult to explain last week’s drop. LOGG pushed above the $0.70 per share mark mostly because of hype. Now, the hype is gone and the ticker is sinking.
Still, there are people who probably believe in the company’s future. An entity called Glamis Capital SA, for example, bought 425 thousand shares at $0.60 a piece last week. In light of this, you might even think that the current share price of $0.56 is a brilliant entry point.
Time will tell if this is the case or not. One thing is for sure, though – it’s nowhere near as good as $0.001 per share, and as we mentioned in some of our previous articles, about a year ago, a few lucky people had the chance to buy 31 million shares at that price.