$80 thousand in July, $22.5 thousand in June, $147.5 thousand in March and more than $0.5 million in February. If you trade in pennystockland, then you will probably know what these numbers mean and which company they refer to.
The former constitute the total amount of money spent on promotional activities in support of the latter, i.e the stock of Li-ion Motors Corp (OTC:LMCO) for the corresponding time periods. As mentioned above, the July toll has already reached $80K and the month is by far not over yet. More than half of it, i.e $45 thousand, came into use yesterday when third parties joined forces to launch a new promotional wave to pump LMCO stock up.
As a result, LMCO gained 16%, closing the session at $0.58 on a volume in excess of 617K. While the surge in price is indeed far from symbolic, it is nowhere near LMCO’s glorious chart run in early-March when the stock was consistently traded above the $1 level. The volume, on the other hand, registered both a three-month record and an eleven-fold improvement over the average daily figure.
What seems especially peculiar here is the fact that LMCO is a regular news provider as well, so it does not necessarily rely on paid advertising programs to remain under the spotlight. Moreover, the company is renowned for its electric super car Inizio. Expected to accelerate from 0 to 60 Mph in less than 4 seconds with zero emission, the prototype might spread like wildfire once it has been released on the market. However, it must obtain a DOT certificate first.
As far as LMCO’s communication with the SEC is concerned, it is fairly intensive as well. The latest current document, a DEF 14C Form, was submitted last Wednesday with the purpose of informing stockholders of an impending three-fold increase of the company’s A/S. Therefore, LMCO managers will soon dispose of as many as 300 million authorized shares. As for the 10-Q report for the quarter ended Apr. 30, 2011, it surfaced in mid-June, highlighting:
- $335 in cash;
- working capital surplus to the amount of $800 thousand;
- a quarterly net loss in excess of $53K as opposed to a nine-month net income of $522K.
Provided that LMCO succeeds in acquiring a DOT Certificate for its work-in-progress Inizio super car, the company might stand a good chance of riding high on the charts. Otherwise, an opposite scenario will deal a major blow to all LMCO supporters.
