L&L Energy’s stock was again on the rise yesterday and it seems as it is making a third attempt to break the high April residences. The reason appears to be some hopeful expectations of high-growth financial results to be filed soon. Although with a gap, the jump was modest, 2.79% in total, and the close at $10.30 is still far away from this year’s highest values.
For a second day in row it was disclosed yesterday that a famous investor relations company will provide coverage for L&L Energy’s stock. The compensation is 50,000 shares under Rule 144 of the company’s stock, which although restricted, can be sold on the public market under certain circumstances at some time in the future. The coverage period has been initially set at six months, though it is not known from and until when, thus how long the expected high investor awareness will last cannot be determined. The promotions were firstly disclosed back in January this year.
Investor optimism was additionally fueled by a press release yesterday. It gave management’s expectations of the company’s operational results and was obviously successful in pumping the price up. However, it seems it will take more time than foreseen to estimate that incredible results. Two days before that, the company filed a notification that the annual report will not be submitted on time. As of end of April, the company, or its PR agents, hope to report a doubled income and 154% higher EPS.
By now, it looks like while waiting for the annual results, the exorbitant emotions on the market prevail. This must also have been supported by the CEO’s own positive attitude towards the price of the stock, who is also a beneficial owner of the company. At the beginning of the month, L&L Energy’s CEO acquired another nearly 205,000 shares of common stock and had warrants to purchase another 200,000 shares, giving thus strong impulse for the market to start buying as well.
Hopefully, investors don’t get disappointed too quickly this time, as it happened after the last quarter results were filed in the middle of March and provided only for a short-term rise.
