Trading in Penny Stock LD Holdings, Inc. (OTC: LDHL) has been nothing short of spectacular in recent months; it ran from $0.02 to $1 in a few weeks in May and then dropped back down before exploding again, this time easily surpassing $1 and now $1.50! Volume is picking up as well and all this on no news from the Company other than a vague and somewhat preposterous update a few weeks ago.
LD Holdings, Inc. is the kind of Penny Stock that investors dream about; making a highly explosive and somewhat predictable run from its $0.20 base to $1.50 What makes this story even more amazing is that OTC: LDHL once sat at triple 0 and was listed on the Pink Sheet Exchange.
LD Holdings, Inc was first incorporated back in 2000 under the name ePoolSpas.com, Inc. DBA Leisure Direct, Inc., However it was not until about February of 2011 when LDHL 1st began trading on the OTCBB at around a Penny.
This stock obviously has several big things going for it but I have not yet figured out what they are. I suspect though that's it's got a very tightly held float and strong support from insiders. In terms of the Company they have serious short term debt with little cash on hand and continue to lose money as revenues decline this year over last year.
According to the 10k LDHL has adopted a business model that seeks to capitalize on the massive transfer of generational assets as the "Baby-Boomer" generation transitions from the ownership of small businesses into retirement. The Baby-Boomer generation is represented by almost 78 million individuals born between 1946 and 1964. Over the next 20 years, as these Baby-Boomers are retiring, there are going to be businesses worth trillions of dollars that need to be sold by this Boomer generation.
Again according to LHDL (and this unbelievably is in their 10k SEC filings) the company's plans are to acquire at least 3 companies with $25 million sales and EBIT of $2.5 million in the next year. At 15 X EBIT this would place a market capitalization of $37 million on the company. In order to accomplish its objectives, and as explained in the next section, the company has developed a 4-Step Process in which to accomplish its plans.
Conclusion: LDHL continues to trade like a speculators dream and book huge gains for investors but nobody really knows what's going on here. It just keeps going up and up and up for no apparent other then the steady aggressive buying. Currently trading at a market valuation approaching $40M LDHL has a history of explosive moves but it's already moved way higher than anyone expected. I started covering LDHL at $0.50 on OTCMagic.com. Make sure you are subscribed so you get the inside scoop on LDHL and so many hot penny stocks!
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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.