As you recall, we suggested you take a look at LTEA today.
According to our analysis, LTEA had a lot going for it into today’s open, as we discussed in our profile: major support, major recent catalysts, extreme oversold profile, monster sales growth, and a new uplisted onto the Nasdaq exchange. It also has a tiny float of under 2 mln shares.
The stock finally may have found a bottom today, digging into the $4 level after a morning extension of recent selling.
Once it came off that support, LTEA shares launched 15% in about 90 minutes. Given everything setting the table, including Q2 earnings, this was a very good sign.
The company reported net sales growth of 137% y/y. The topline was fantastic, including the company’s first ever quarter above $1.5 mln in sales.
The stock’s initial downward check of support was in reaction to the net loss on the quarter, but may represent a “kitchen sink” quarter in terms of folding in operating expenses.
The important part of the picture was the stock’s hold of support. This reminds us of what we saw with COSI last week. It’s a similar story. And that stock has done nothing but continue to climb (+100% since its earnings reaction)
LTEA is definitely one to keep squarely on your radar!
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