For the last 52 weeks, the stock of Location Based Technologies Inc (OTC:LBAS) has been traded between $0.0621 and $1.34, which suggests that pooling your money into LBAS might turn out to be a fairly challenging experiment.
When LBAS closed the latest trading session, its stock clocked in at $0.817 per share. Compared with its Firday’s performance, LBAS marked a slight movement upward, gaining 1.24%. Not as impressive as its supporters might have expected, especially considering that the traded volume barely cracked 240 thousand, marking a new six-week low.
The little interest in LBAS stock yesterday is even more confusing given that it was preceded by a brand-new press release. The latter revealed that CEO Dave Morse was to attend the G8:ThinkEquity’s 8th Annual Growth Conference due to take place next Wednesday in New York. Most probably, Morse will present the company’s unique GPS locators.
Location Based Technologies Inc engages in the development of GPS location devices to ensure constant connectivity between people and businesses. Whether or not the company has chosen the right niche is evident from its latest financials. As of now, LBAS most current financial document is the 10-Q report covering the quarter ended May 31, 2011. The report revealed:
- cash reserves in excess of $350 thousand;
- negative working capital to the amount of $7.3 million;
- a quarterly net loss of $1.19 million.
As it seems, it will take a while before LBAS manages to go in the red. Considering that it currently disposes of no working capital whatsoever, the odds are more or less against Morse & Co. Nevertheless, the GPS technology sector is by all accounts a nice place to be in. That is why, LBAS could stand a good chance of improvement as long as it manages to raise enough capital to get things right. At this stage, however, investors are far from being overly enthusiastic about it.
