Yesterday, the market was quite consolidated about the $9.73 closing price for L&L Energy stock. This corresponds to a minor percentage increase of 0.10% and the demand for the shares was also not really impressive. Around 500,000 shares were traded, an amount higher than the volume from Friday, but still below the average for the stock.
As previously disclosed, the paid stock promotions for LLEN continue running. The second for this month disclosure was made yesterday, and according to it, the promoters have received 20,000 restricted shares of the company. In the beginning of July this year, the company paid the same promoter 15,000 restricted shares for twelve months of services, including the preparation of an equity research report and the distribution of LLEN marketing materials to investors. Additionally, the company is paying a monthly fee of $8,000 in cash.
Though, despite of the marketing efforts, the stock cannot establish an uptrend yet.
There were some positive corporate updates as well recently. The annul shareholder meeting will be held on September, 9 and among the issues to be voted is the election of Norman Mineta to the Board of Directors. Mr. Mineta serves currently as a vice chairman of an international consulting firm and has a solid political career, among other things as US Secretary of Transportation.
The annual results for the fiscal year ended this April filed with delay end of July were also positive. Revenues and net income show remarkable growth rates on an yearly basis and the acquisitions and the purchases of property of equipment were financed mostly through cash flows from operations.
Though, dilution has also been substantial, arising partially from the capital structure of the company. Nearly 7.6 million new shares of common stock have been issued over the last fiscal year, from which 3.3 million for cash and the biggest part of the rest upon exercise of warrants. Some financing activities in October and November last year also hide risks for further dilution, as they resulted in the issuance of warrants to purchase over 1.3 million shares of common stock at an exercise price of $5.62.
