In case you were wondering, here are the facts concerning Lot78 Inc (OTCMKTS:LOTE):
LOTE some facts
- ~$1 billion market value as of 5/21/2013 close.
- $0.5 million in ANNUAL revenue (that’s right, something like 2000x revenue), DOWN from prior year.
- Lot78 Inc (OTCMKTS:LOTE) borrowed $40,000 (yes, that’s not a typo) from its founder just to stay in business.
- LOTE’s auditor expressed doubt on its chances of survival.
And there’s plenty more.
Now some of you might wonder, how is the stock up? Here’s a theory:
“box job” – promoters obtain hidden control of the entire supply of a public company’s securities creating a a secret monopoly. Control of the shell corporation and its stock is concealed by the use of nominee officers, directors and shareholders, who hold their stock in their own names, but are secretly controlled by the promoter. Hidden control of a public “boxed” shell company is a very valuable commodity, one that can be sold to unscrupulous individuals who use this hidden control to manipulate the company’s stock price. (loosely quoted from a random DOJ brief)
Source: seekingalpha.com/article/1394981
We’ll leave you to think through the moral and legal consequences, if true…
By: thelongshorttrader
