I smell some puppetry comimg from a penny stock promoter, we'll refer to him as "NT", out of Pasadena Ca whom hand picked T Ballantyne to be on the BOD when this co went public. Or so he has alleged in his rambling letters to investors. IMHO, it looks like Tad may have been put up to buy some shares with monies other than his own, to prop up this cardboard cut out of a company. What's $400k in funny money when the main benefactor has 51% of the stock. As they say, follow the money, the contracts and side letters.
They are spreading rumors that ALL of the lawsuits will be dropped, that the dividend will hold and the stock will take a moonshot.
Problems....margins are falling like the meteorite that hit Russia last week, the company has such a reputation that no one will show up for these half baked alternative investment forums, and its obvious that regulators want them gone and there is no political leverage left....because they have become a pariah in Tx, Co, Ca.... They have resorted to getting funds for resales from these Reg Ds generated by ASR. Not a sustainable business model...and then they take a bullet to the head from their lead LE underwriter with massive LE extensions.
Bad news coming...count on it, it works this way every time.
The nobel efforts of stock promoters usually suggest things that MAY happen, but never do. They also use the time honored tactic of giving a few truths or half-truths and then formulating an investment theory using assumptions that are false. For example, the typical pumper will hype a POTENTIAL sourse of funds (e.g., the trust) but will never tell admit that it could easily be a money loser and will never admit that it is doing so poorly that it should be impaired (perhaps twice by now). Another example is suggesting the SEC loses all their suits, suggesting that all regulators are bumbling fools (not that far off the mark in terms of Texas), etc. These promotors also said the SEC investigation was taking so long that nothing would ever be found. Then they said the Wells notice was a joke and would be "beaten." Then they said the complaint would be "beaten" with a Motion to Dismiss." Then they said the SEC has no case. Yeah, right.
It is time to short this dog again. The pump is over, the FED is starting to modify the QE, and there is no good news coming for LPHI.
It is not you. I am pretty sure there are a lot of uptics on the open to boost the stock price and on the close, too. The closing buys could mean there is a short covering a certain number of shares each day, but judging by how much the shorts have covered in the past half year or so there isn't much of a position left. The opening buys smell like manipulation, but that is hard to prove if true. We all know that the stock tends to go up on pumping before bad news hits. This time it did just that (before the earnings), and then went up again. I can see no way this company has decent positive earnings (from their operations) ever again unless, as management discussed in the 10-Q, there is a successful resolution to the SEC suit. That IMHO isn't going to happen, and the other civil suits are also moving forward. Worse, the public now knows the SEC & the State of Texas want the company out of business or their business model changed.
This stock has crashed from the highs and it seems like it will take time to go down even more unless something good happens that will help operating income. I just can't see what that good can happen here.