Last month, Location Based Technologies completed a private placement of 50 million shares of its common stock to institutional and accredited investors at a price of $0.20 per share. The company’s net proceeds from the private placement were approximately $8,998,500. The company plans to use the proceeds from the private placement to find its growth opportunities going forward.

Last month, the company also announced that its first volume production PocketFinder® devices will be manufactured at San Jose, California facility of Jabil Circuit Inc. (NYSE: JBL). Dave Morse, CEO of Location Based Technologies, said last month that within the next few months the company will deliver top quality, market ready devices to its retail launch partners as well as to Tier 1 telecom carriers that have expressed distribution interest in its versatile GPS location devices.

Following last month’s announcements, the company’s shares are up 71.19%. In the last three months, the penny stock gained 379.01%. Year-to-date, the stock is up 379.33%.

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Location Based Technologies Inc. (LBAS) engages in the design, development and sales of personal, pet and vehicle locator devices and services. The Company is a developer of the PocketFinder family of products and the PocketFinder Network. The PocketFinder family of products includes the PocketFinder People, PocketFinder Vehicle, PocketFinder Pets, PocketFinder Luggage, PocketFinder Mobile and PocketFinder Fleet. The PocketFinder is a small location device that enables a user to locate a device, person, or pet, at anytime from almost anywhere. PocketFinder personal locator devices are wireless. Users can monitor the safety and location of family members, pets, and valuables using global positioning system (GPS) and general packet radio service (GPRS) technologies.

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of LBAS dropped $0.10, or 9.26%, to close Thursday’s session at $0.98.  More than 1.51 million shares traded hands during the session, against the 10-day average of 71.97K.

LBAS has gained 10.4% in the last week; 151.3% in the last month; and 671.65% year-to-date.

Late last month, the Irvine, Calif.-based company issued a press release announcing the first volume production of its PocketFinder devices will be manufactured at the San Jose, Calif. facility of Jabil Circuit Inc. (NYSE: JBL).

PocketFinder products, combined with LBAS’ soon to be enhanced applications for GPS Smartphones, are an example of how technology can enable businesses and families to optimize their busy, highly mobile lives and enhance their ability to stay connected. This new capability, made possible by combining the benefits of wireless and internet technologies, will allow people to connect to other people and to things that they value from anywhere and at anytime.

“Within the next few months we will deliver top quality, market ready devices to our retail launch partners as well as to Tier 1 telecom carriers that have expressed distribution interest in our versatile GPS location devices,” LBAS CEO Dave Morse stated in the press release.

Les Pawlak, Jabit senior director of sales, also commented: “We are looking forward to bringing global quality manufacturing and design expertise to PocketFinder’s family of products, which aligns with Jabil’s goal of focusing on growing our diversified manufacturing services business.

Also last month, the Company announced the closing of a private placement of about 50 million shares of its common stock for $0.20 a share, for net proceeds of nearly $9 million. CEO Morse said the proceeds will be used to fund the LBAS’s growth opportunities going forward and are expected to allow the Company to meet its launch timeline

Source: finance.yahoo.com

Financial Summary

For the nine months ended May 31, 2011, the Company generated $9,442 of net revenue from the sale of devices and services for PocketFinder Vehicle and VehicleFleetFinder, as compared to $61,738 of net revenue for the nine months ended May 31, 2010, that primarily consisted of consulting revenue from the Professional Services Agreement with LoadRack.com LLC. The LoadRack.com LLC consulting revenues were earned pursuant to a development agreement for the design, construction and implementation of a location tracking system for transportation fleets.

Total operating expenses were $2.19 million as compared to total operating expenses of about $3.25 million for the nine months ended May 31, 2010. Operating costs decreased by approximately $1.06 million or 33% in 2011 from 2010.

LBAS posted a net loss of about $5.27 million for the nine months ended May 31, 2011, slightly lower than the net loss of $5.45 million reported for the comparable period last year.

Source: Form 10-Q for LBAS

Technical Analysis

Source: http://stockcharts.com

LBAS is trading above its 20-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

LBAS’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility.

The MACD for LBAS currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

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In the last three months, Location Based shares gained 609.68%. Year-to-date the stock gained 633.33%.

Late last month, Location Based announced the completion of a private placement of 50 million shares of its common stock. The company plans to use the proceeds from the private placement to fund its growth opportunities going forward.

Location Based is a designer and developer of leading-edge personal locator GPS devices and services.

Shares of Micro Imaging Technology Inc. (PINK: MMTC) are down sharply in today’s trading. At last check, the penny stock was trading 7.91% lower at $0.0128, with volume up from daily average of 29.27 million to 43.52 million. Despite the decline in today’s trading, the penny gained 9.4% in the last three trading sessions.

In the last three months, Micro Imaging shares gained 326.67%. Year-to-date the stock is up 75.34%.

Recently, Micro Imaging entered into a strategic alliance with EPIC Corporation (EPOR.PK). Under the alliance, the company will receive equity investment from EPIC. The company’s products will be also distributed by EPIC.

Micro Imaging is the developer of a rapid microbial identification system.

Shares of Sino-Forest Corporation (PINK: SNOFF) are climbing in today’s trading. At last check, the penny stock was trading 4.40% higher at $7.03, with volume at 217,260. In the last three trading sessions the stock gained 8.99%.

Sino-Forest shares are down 64.49% in the last three months. Year-to-date the stock fell 69.89%.

The sharp decline in Sino-Forest shares in the last few months has been due to a research report published by Muddy Waters on June 1. In the report, Muddy Waters alleged that Sino Forest overstated its plantation assets in China.

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LBAS recently inked a $1.2M professional service contract with LoadRack.com, LLC – a leading technology solution provider to the trucking & freight monitoring industry – to integrate its PocketFinder® network with the new LoadRack™ real-time location system.

According to today’s press, the new partners feel strongly that the unparalleled visibility afforded by their solution will revolutionize the trucking industry and also help generate upwards of $12.5M for LBAS over the next year.

Efficiency is the name of the game

Efficiency is the name of the game in the trucking industry and achieving it is made more difficult by the day. Exorbitant diesel prices and a wounded economy have been forcing drivers off the road since last summer. A shortage of qualified drivers mixed with government regulations focussed on reducing emissions and limiting the number of hours that drivers can work also hurts the cause. Throw traffic congestion and a lack of new technologies into the mix and you’re looking at a pretty ugly situation.

“Smart Solutions” can help

A “smart” real-time tracking solution cable of re-routing shipments, managing time delays, and maximizing fuel efficiency while minimizing emissions by remotely monitoring travel speed in real-time, presents a very compelling value proposition to the trucking/freight industry. With the American Trucking Industry estimating that the industry spent roughly $150 billion on diesel fuel in 2008, up from $112 billion in 2007, a product such as the one being developed by LoadRack has perhaps never been so timely.

The partnership is quite promising for LBAS for a number of reasons.

First and foremost, MONEY: the deal is worth $1.2M up front and is expected to help boost sales into the $13M range a year from the solution’s launch. Second, it reflects the versatility and value of its core technology and allows the company to spread its wings into an extremely lucrative vertical market with pretty much zero resource expenditure. LoadRack has established a favorable position in the industry and is willing to do all of the heavy lifting.

In addition to the enormous smart phone application software and personal location GPS markets, LBAS is now positioning its offering to take a piece of yet another massive opportunity. Given the nature of its core technology, the diversification likely won’t stop here.

For a company just getting its start, today’s announcement is quite promising. Only time will tell if all the good news coming out of the company will translate into financial gains and success in the markets, but LBAS certainly appears to be off to a great start.

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