In yesterday’s trading session, the stock price of Lifelogger Technologies Corp (OTCMKTS:LOGG) registered a green session after recording four consecutive sessions in the red. The stock closed with gains of more than 2% $0.410. Compared to the high of $0.562 recorded last Thursday, LOGG has wiped eroded more than 30% of its market value.
Despite the sharp decline in valuation, Lifelogger’s market cap of nearly $34 million remains largely disconnected from the core fundamentals of the company. As per the latest financial report recorded at the end of March, Lifelogger has cash of just $81,000, which seems inadequate for a company working on development of products. The current assets were no more than $81,000 and current liabilities were no less than $55,000. The company recorded revenue of $0 and net loss of $290,000. Even after the $150,000 injection achieved via sale of 348,000 shares, the balance sheet looks dismal.
The delay in launch
Lifelogger don’t have adequate resources following which it is finding it hard to launch the planned products on time. The company initially anticipated to have hundred working prototypes of its advanced wearable camera by last November with production planned to commence in 1Q2015. However, things didn’t work out as planned. The corporate presentation delivered on May 19 showed that the final prototype is ready for testing but again no specific dates were disclosed.
The status of cloud-based software platform is no different from that of wearable camera. As per the presentation, Lifelogger was supposed to start private beta testing by the end of 2Q2015 but it appears that the deadline was delayed once again. It should also be noted that there have been no official PRs released in last few months. Going by the data, since the start of year there have been just two PRs released in the year.
Lifelogger Technologies Corp (OTCMKTS:LOGG) ended the last trading session with a modest gain of 2.45% but more importantly the price action of the day created a Bullish Hammer candle. That candle suggests a possible reversal of the short term downtrend and an end to the correction. The volume of 697,000 was a bit lower than the daily average of 868,000, not strengthening up the bullish speculation that much. On the other hand, the short term dominant channel at work is clearly visible on the chart attached and a retest of the lower boundary can definitely push the price up.