Another of the penny stock chat room favorites is Lifeline Biotech (LLBO). It has been a hot topic off-and-on for many months.
LLBO’s buzz is that they have the next generation medical device that can identify and locate “breast abnormalities” i.e. Breast Cancer. I have known many women who are breast cancer survivors and their best tool in this fight is early detection. That gives LLBO some instant cachet with their device.
According to LLBO’s press releases (and there are many), conventional mammograms miss 20 to 30% of cancers. LLBO’s First Warning System has a 95 to 100% success rates in identifying tissue abnormalities.
LLBO’s story is compelling, press releases seem to indicate that the company is heading in the right direction…even the chart is looking favorable. There is so much that is not known, though….they are a non-reporting sub-penny stock that is touting a revolutionary product yet we know nothing beyond what is in their press releases. This is a typical sub-penny stock!
Here is the chart:
LLBO soared to 2.5 cents in late July and has since sunk back sub-penny status ($.004). Stochastics are indicating an oversold condition. The MACD is sliding sideways in a midly-bearish direction. LLBO is trading at the lower of the Bollinger Bands and has slipped below the 50 and 200-day MA.
I can’t even begin to use my crystal ball on this one. It has the makings of a good penny stock and could be subject to some strong price swings. That is where the opportunity lies for traders.
Several factors make this a high-risk play: 1. They are trying to raise capital (I can’t understand why it is so difficult….if this product was everything it is being touted to be then investors would be lining up at the door). 2. The company has started the FDA process…it is a medical device not a drug which makes the process easier, quicker and less expensive…we hope. 3. You have to rely upon PR to know what is going on with the company…not always the best way, either.
Definitely a radar stock that I would recommend. Here is their site for your own due diligence: www.lbti.com/
Good luck and good trading.
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