LLTP-logo.jpgThis is certainly the year of Lightlake Therapeutics Inc.(OTC:LLTP) and its shareholders. January started with $0.3 per share, yesterday`s session closed at $0.75. Yet, it might be too soon to open the champagne, as the stock performance does not always reflect the company performance.
Traditionally, a closer look at a penny stock should start with the performance on the stock market and the SEC filings, if there are any. Now, as mentioned, the way the shares accumulate value this year is simply inspiring. The financial statements, on the other hand, reveal a much different picture. LLTP-17.03.11.png
First of all, just two years ago Lightlake went by the name Madrona Ventures, and Madrona Ventures had little to do with treatment of disorders of any kind. This is why a look up in sec.gov would classify Lightlake as a metal mining company. Until, of course, it radically changed its business direction. While it is quite interesting how the latter is transformed to treat patients, it is even more interesting to take a closer look at the numbers in the latest 10-Q with an end date 0ct. 31, 2010: 
  • total current assets of $2300, which is cash only;
  • total liabilities of $898k;
  • accumulated deficit of $2.3 million;
  • no revenues, net loss of $281k; [BANNER]
While the above numbers are certainly not quite optimistic, they don`t mean the company is doomed. Yet, the question at hand is still valid – what drives the stock up in price. After all, this is not some heavily traded company, for Lightlake there are many occasions when even a single trade is not made during the day. This week is a perfect example. There would be no trading one day and exploding volume on the next. 
Which in a certain way describes Lightlake`s progress. It is yet to see whether the former mining company can achieve real stability and sustainable growth on the stock market. Clinical trials are on the way, and their results would ultimately determine that. In the meantime, speculators would have an open ground to affect the price with unconfirmed rumours all over forums and blogs on the Internet.