Li-ion Motors Corp. (OTC:LIMOD) has been on a severe and lasting downtrend for at least a year now. Last week, it led the stock price to a new yearly bottom so that promoters took the stock on the watchlist again. 
LIMOD, which is the new ticker symbol of the company that formerly traded as LMCO, closed Friday session with a 16% drop in its share price from the previous close at $0.21 for a share. In each of the last three trading sessions the share price touched the new 52-week low, but on Friday the trading volume declined and was much lower than the 3-month average with only 7,800 traded shares.
Another indication that LIMOD could bounce up from the bottom, at least short-term, is the new promotional email on the stock that we detected on Saturday evening. According to our data, it is the only promo mail on the company under the new ticker symbol. A third party has ordered and paid for the promotion, while the total amount spent on promoting LIMOD is $3,000 for February.
There hasn’t been much of news on the company recently. At the end of January, Li-ion Motors filed an 8-K to the SEC announcing a 1:5 reverse split in the company’s outstanding common shares, as well as a reduction of the authorized capital from 300 million to 60 million shares. Effective date for the reverse split was January 26, 2012, according to OTC Markets.
LIMOD spike of the share price from the end of last month was probably due to that news, yet as expected the effect of the reverse split was very short-lived. As of end-October 2011, the company had zero cash, insufficient working capital and its revenues were still very small.
