Hristina Beeva

Limitless Venture Group, Inc. (OTCMKTS:LVGI) Offers a Glimmer of Hope

by Hristina Beeva May 13, 2014
Limitless Venture Group, Inc. (OTCMKTS:LVGI, LVGI message board), a recent high-flying OTC stock, is back into a low range, and now the question is whether there would be a recovery, or yet another painful dead cat bounce. LVGI added a net of 7% on Monday, to $0.0029, as dollar volumes reached $343,000. Still, the ticker is depressed compared to the positions during the March promotion. LVGI0513.png

The end of the email campaign led to an almost immediate drop of 50%, just when LVGI was envisioned as potentially conquering a price of a few pennies. Now, the company tries to patch up its reputation through fresh press releases, though these stopped as well on April 16th. KRED0513.png

But what will be the next move for LVGI? The energy and specialty drinks company keeps investors waiting, as forums expect an update on upcoming production and perhaps more clarity on the company's true earnings potential. It is still questionable, though, whether LVGI will be able to lift itself up fast from a somehow problematic financial position:

  • cash: $4,216
  • current assets: $9,216
  • current liabilities: $1.8 million
  • quarterly revenues: $0
  • quarterly net loss: $421 thousand

Now, LVGI plans to launch its product line in Europe, but we have no way of knowing when that would translate into changes in the OTC company's bottom line.

In the past, we've seen other tests of European businesses gaining access to the OTC markets. Lot78, Inc. (OTCMKTS:LOTE) was heavily promoted, reaching a post-split price of $5. Unfortunately, when the hype ended, the ticker sank into obscurity, and now barely manages to hold onto the $0.03 range, threatening to turn into a double-zero stock if the fallout continues.

The biggest risk that LOTE poses are days where it regains some of the positions, only to crash even harder.

While soft drinks have the potential to be a cash-cow business, so far we have not seen impressive price climbs for this sector. Bebida Beverage, Co. (OTCMKTS:BBDA) has all the right ingredients, but due to great stock dilution, it sank again toward the edge of the triple-zero levels, for now holding on to $0.001.

Kona Red Corp. (OTCBB:KRED) is performing a bit better, with a renewed climbing trend, from $0.50 toward $0.75 in the past weeks. KRED also suffered because of promotions that caused a disproportionate climb.

If you like companies in this sector, keep in mind that there are no discernible bubble conditions, and this may mean that each climb is an exception. Avoid over-investing in any of those selections, unless you can also afford the losses, and make sure you are aware of any artificial attempts at boosting the stock price by emails or targeted press releases.

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