Lot78, Inc. (OTC: LOTE) hit the bb's at around $1.40 in the third week of March, the stock did not stand out much for a number of other promo stocks I was watching and I didn't really think much of it.
Of course what has separated LOTE from the rest is the fact that this one has just kept going. After hitting a high of $3.75 in the third week of April most investors including myself thought it was done but it just came back stronger then ever, exploding over $6 per share in a matter of days.
LOTE is being promoted by Eric Dickson's Breakaway Stocks hard mailer campaign with a documented $2,500,000 documented budget. The paying party is Capital Financial Media LLC.
According to a recent press release Lot78, Inc. is a trend-setting leader in the design, marketing, distribution and sale of urban apparel - retailing under the brand name "Lot78" in five continents, including: North America, Europe, Asia, Australia, and South America. Lot78 has been featured in US Weekly, Elle Magazine, Financial Times, Harrods Magazine, The London Evening Standard, and Grazia Magazine as an emerging global brand.
LOTE has been putting out some exciting press including expanding its US distribution agreement with Barneys New York increasing its distribution from 1 store to 4 stores for AW'13. Also on April 22 they announced "Lot78 Sees 80% Increase in its On-Line Store, President and CEO Amhurst Anticipates Significant Brand Reach and Revenue Growth.
And all this talk about high growth on their domain lot78.com; the website gets a fraction of the traffic otcmagic.com commands.
I would suggest that LOTE cannot maintain anywhere near the $345 million market valuation once the promotion dollars run out and that anyone buying the stock at current price levels will lose most of their investment.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.