L&L Energy, Inc. (NASDAQ:LLEN) Attempts to Stay High On Promos and IRs

L&L Energy, Inc. (NASDAQ:LLEN) tries to keep the uptrend on improved investor relations and promotional campaigns. The strategy lost its push-up effect, however, as the market drew back.

L&L Energy’ s rising potential seems to be exhausted, as the small steps backward become larger. The stock lost 5.55% of its value and ended at the lowest close for the last four weeks at $10.72. The market is driving the price back to a more plausible fundamental value, as investors dramatically sold out on Friday, reflecting the more than doubled trading volume and the significant short selling. The price and volume peaks at the beginning of this month being also due to a large extend to high levels of short selling, suggest further that the stock was, and probably still is, highly overvalued.

In response to the diminishing investor interest over the past two weeks, and attempting to prolong the currently interrupted uptrend, promoters and PR agents were engaged again on Friday. The company paid $30,000 to get promoted, and simultaneously an announcement came out, saying that L&L Energy will provide investors with inside views about their coal business in China through a virtual conference on Wednesday.

This was the fourth promotion for this year, but investors do not seem to get impressed that easily anymore. Previously, at the beginning of March, the company paid with 50,000 shares to promote their stock and the attempt was then by far more successful, causing a spring by 11,65% on the following day and finally managing to induce a sustainable uptrend. As on Friday, a promoting press release with financial results forecast also came out, accompanied by an investor newsletter alert.

A SEC filing on Friday declared the sale of L&L Energy’s 93% interest in a strategic subsidiary for $6 million. The massive PR campaign could not make the market overlook that the biggest part of the proceeds from the sale will go to pay out the sold unit’s debt.

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