LBYE started jumping up last Wednesday. On Friday, the share price went another 11.72% up to a close of $0.715. More importantly, the volume record from last Wednesday has been broken, as over 484,000 shares were traded. Some heavy promotions over the past month have accumulated a lot of promotional energy for the stock, but LBYE share price performance will still have to catch up with the explosive volume to justify the huge amounts of cash that have been spent on those promotions.
Since the middle of September, at least four different promoters have received the impressive total amount of $680,000. The third party Winning Media seems to be a true fan of speculative mining companies and their stocks. After paying for the Gold American Mining Corp. (OTC:SILA) promotions last week, LBEY was also on that party’s list of stocks whose price has to be inflated. Winning Media has paid $60,000 from the above mentioned compensation.
LBYE has still not reached the peak of its overvaluation, which is at $1.50 for a share, but still has impressive trading parameters: a P/S ratio of 31,333 (industry average is 7.17) and a P/B ratio of 180 (industry average is 1.08). It is hard to explain where all the optimism comes from, as according to the latest financial report of the company it only has some failed exploration works, yet no proven reserves and around $43,000 in cash to fund any further exploration, or maybe to pay out the $330,000 in current debts.
That last issue might get resolved soon. In July this year, Liberty Energy entered into a share issuance agreement with an investor for up to $4 million. The company can receive cash advances under that agreement and has to issue a corresponding number of units for each advance received. A unit shall consist of one common share and one half of a warrant.
No transactions have been announced yet, and it remains a mystery how all the released this month “project updates” have been financed.
