On Friday, LCHL share price jumped 42.86% up and closed at $0.20, which happened on the historical volume of 19.57 million shares traded. That value is over 376 times the average trading volume of the stock, and has never been seen since the stock is trading on the pink sheets market.
Unfortunately, it seems that the only thing behind the suddenly boosted liquidity of LCHL shares is not a historical fundamental improvement in the company’s business model, which is still losing money. The stock has been on the watch list for Friday of at least three stock promoters, and respectively they have alerted their newsletter subscribers on Thursday night.
Following the huge rush on their shares and maybe with the idea to guarantee continued excellent performance for the stock, DeFi issued on Friday evening their latest press release, but as their survival gets even more under question, the effects on the share price are unpredictable. In the middle of August, DeFi’s had to find a new independent auditing firm after the resignation of the previous one. The shocking working capital deficit reached almost $7 million in the quarter ended this June.
The company is currently working with Royal Caribbean Cruise Line (RCCL) and supplies their cruise ships with iPhones empowered with DeFi’s software technology. Some revenues came in from renting such iPhones to Royal customers on board, but DeFi no cash to buy the equipment needed to fulfill the entire contract with RCCL, which is the only hope for substantial near-term revenues.
A step in that direction has been made in February this year, as the authorized number of common shares was increased from 150,000,000 to 250,000,000. Now, apart from the trading alerts, the next thing that could make LCHL stock remain attractive is probably the raising of the needed funds.
