After the deep pull back from the last promotions-free month, Li-ion Motors Corp. (OTC:LMCO) stock looks like it is about to 
return back up to the high levels from June. Shortly after the sharp surging up over the last week, the next disclosure for a paid stock promotion was published yesterday.
This month, six different promoters worked hard for Li-ion Motors’ stock appreciation and the results can be well seen on its chart. They were not for free, however, as the stock marketing campaigns were worth $405,000 paid in cash, usually by a third non-affiliated party.
Considering the extremely positive correlation of LMCO stock price movements and the promotional disclosures, it seems obvious that the stock is unable to retain investor interest and high trading price without being promoted. July, being a month without promotional disclosures, was not a month of success for LMCO and its investors, and was characterized by almost no trading activity and lots of broken support levels.
As one can thus suppose, the paid promotions started this year at the end of April and reached their peak in June, which was also the month with the highest levels for this year.
The number of stock promoters is almost uncountable, the same holds also for the press releases by the company. Yesterday, the stock had a pause for a while and closed 0.68% down at $1.47 on above the average trading volume. Though, this still did not change the extreme market overvaluation for the developer of electric power vehicles, which currently trades at a P/S ratio of 61.99 as compared to 0.61 for the relevant sector and 0.23 for the relevant industry.
As for the sales, they grew up over the last quarter, but don’t seem to be growing on an annual basis. Moreover, the company is still making considerable losses and is heavily indebted. The working capital deficit for the three months ended this April was $1.87 million, Li-ion Motors has long-term debt of $4.22 million and total assets of only $2.5 million.
In regard of such a financial position and after the reverse 1:2 stock split from this February, it looks like Li-ion Motors is in urgent need to raise additional funds.
