Hristina Beeva

Liberty Coal Energy, Corp. (OTC:LBTG): There is No Bad Publicity

by Hristina Beeva April 16, 2013
It's rare for a small cap company to come clean- and admit that it did not want the attention from a paid promotion. Liberty Coal Energy, Corp. (OTC:LBTG, LBTG message board) received a skull and bones warning for a possible spam campaign, but the group denies any involvement or intention to participate in a paid promotion. Whether the campaign was intentional or not, LBTG is up 102% and reaches $0.036. LBTG0416.png

Although LGTB lists coal as its main concern, on the OTC markets it is listed as a software development company. Until 2010, it also dabbled in teaching, as ESL Teachers, Inc. Let's see how the past is reflected in its financial statements. LGTB, capped at 11.3 million dollars, shows the following:

  • $7.556 cash
  • $193,186 total current assets
  • $240,184 current liabilities
  • Zero revenues
  • $360,944 loss from operations

As it is easily seen, the company is debt-financed, and although it is not buried under millions, so far it has not shown an easy way out of its losses. But its success with coal mining concerns the long term, while in the shorter term the stock has been most responsive to paid promotions.

LBTG claims in a press release that a European entity pumped the stock, stating that the company is the target of a buyout by an unknown entity. What is paradoxical is that the investigation and indignation serve as further noise and exposure for the small cap company, propping up its stock. But all this noise might have a negative effect as well, and just as investors flocked for buying, so they may sell very soon, if they become disillusioned. Our database still has not intercepted the latest campaign.

Although LBTG claims it has no knowledge of the person or persons that ordered a promotion, a paid email from last fall mentions the paying party may be large shareholders from the company. The last mention from Liquid Pennies was recorded on October 11th last year, a promotion with a budget of $17,500. Currently, Liquid Pennies is busy with Face Up Entertainment Group (OTC:FUEG), which seems to be blocked from trading in the past few days, and also received a skull and bones warning.

What is even stranger is that LBTG announced yet again an unwanted promotion on January 23. Still, our database does not list the promotion- but the date of the press release coincides with a sharp spike in price and volumes. Whatever we make of this, we must remember that those spikes are real and disproportionate, and may endanger your whole investment, if the stock corrects sharply. It is best to decide for yourself what the acceptable losses will be, knowing that for now, each innocent protest brought the ticker a sharp climb and a rapid drop.

Comments 1

1. Guest
May 20, 2013, 08:31PM

Quotes Hi Hristina... Your articles provide much food for thought and are a valuable contribution to penny stock players. I think there is one single point missed regarding Liberty Coal, that in fairness should be pointed out.

Liberty's CEO is an actual certified mining engineer with a lifetime of mining experience. Unfortunately he didn't score very high in "how to buy a public company off the shelf." My guess is when he took on this public company he didn't know about certain skeletons in the closet that would make for choppy water early on. My point however, is that Liberty is not managed by someone who thought they would sell jelly beans for a while and now have decided to try coal. The management is solid.

If they make it over the hump, I think they will do well. BTW at this time I have no stock and am not an employee. Like many others, I am in the wings following the "adventure."

Glenn

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