Since the beginning of February and as of yesterday, the weight of Lightlake Therapeutics (OTC:LLTP) stock increased by 172%.
In addition, sporadically, the price of LLTP jumps up not being fed with news, the “natural nutrition” of the company’s food.
Looks like some greedy shorters’ addiction to LLTP is the main reason for the not so healthy obesity of Lightlake Therapeutics stock these two months.
On the one hand, for some investors that already banked gains on LLTP and for the company itself, the good shares’ performance is not a reason to suspect any symptoms of a disease.
On the other hand, investors that plan to hold LLTP may suffer from emptied by losses pockets.
One of the messages on the web page of Lightlake Therapeutics says that “Obesity Starts with an Addiction to Foods”.
This is what happens to shorters, which already have an addiction to LLTP.
In the beginning of February, two days after the press release of Lightlake Therapeutics announcing the adoption of a safer approach to obesity, LLTP was worth $0.29 per share.
Then, on the company’s positive news and in only three trading sessions, the shares lost many “kilograms”. In a not heavy trading volume, LLTP was worth 37% less. On the fourth day after the release, LLTP suddenly surged 37.93% between two trading sessions.
And this was only the beginning of the story.
Exactly one month later, on the same place and maybe with the same players, the lavish shorters’ party started again. On no company’s news, the discerning gourmet shorters started with a modest presence on the LLTP market, representing only 37.5% of the total volume traded. On the next day, March 2, 2011, the overgenerous binge of shorters was only for dedicated investors. During the trading session, the share of the shorted volume was 100% of the total volume traded.[BANNER]
Since last week, as to add some diversity to these lucrative binges, over the Internet are disseminated stock alerts and a so called “research report on LLTP”. This also adds a few kilograms to the value of LLTP.
All above is not presented with arguable thoughts about Lightlake Therapeutics and its stock. According to the latest financial reports, LLTP still shows potential for growth, despite the accumulated deficit of $3.3 million since the company’s inception in 2005.
The company plans to enrich its products’ pipeline. The first steps are already done through the US patent entitled: “Method for terminating methadone maintenance through extinction of the opiate-taking responses, using an opioid antagonist as treatment”.
Though all the positive company developments are able to result in a “natural” share price increase, during the last two months the speculative interest in LLTP was the main factor for the good shares’ performance.
