On Friday, The Bowser Report
issued a daily mover alert on LightPath Technologies (LPTH) and Direct Insite
(DIRI), both of which fell more than 10% for the day.
Despite a 24% increase in
quarterly revenues, LPTH reported a $535,583 loss compared to a $141,213 income
in the same period last year. Again fueling the company’s loss was a negative
change in fair value of warrant liability of $1,055,179. The reason that this
charge occurs is because of an increase in the company’s share price during the
quarter.
The enormous loss seems
detrimental, especially considering the stock’s reaction today, but change in
fair value of warrants liability is a non-cash charge. That said, without the
charge, earnings would’ve been closer to a $500,000 gain.
Nonetheless, LPTH shares have
exhibited volatility lately, likely causing a lot of subscribers following the
Game Plan to exit their positions following a double. If you don’t have good
tolerance, this isn’t a good stock for you because of its recent ups and downs
and warrants hampering its bottom line.
Today’s move was nothing out of
the ordinary for DIRI, which continues to be volatile at these low prices.
While DIRI is somewhat attractive at the current price, remember what sent the
stock plummeting in the first place: a customer deciding not to renew its
contract THIS MONTH. That customer accounted for a good portion of the
company’s sales.
So, while its Bowser Rating and price
allow for those following the Game Plan to enter a position, know that there is
no end in sight for the volatility and that if financials turn out worse than
expected in upcoming quarters, this stock will likely get hit hard.
To learn more about The Bowser
Report, visit https://thebowserreport.com
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