Thursday, May 10, 2012

LuxeYard (LUXR)

Some three weekends ago I got a glossy 8-page penny stock advertisement "newsletter" via snail-mail.  Before chucking it into the trash, I decided to give it a once-over, realizing that my slate of investing ideas had fallen somewhat lackluster of late.  Touted in the center of the infomercial newsletter was an article about up-and-coming ecommerce site Luxeyard (LUXR.PK).  On a whim, I decided to research the company a bit, and found this initial description on Yahoo! Finance:
Luxeyard, Inc., through its subsidiaries, operates as a member-based online marketplace for luxury home and other consumer products at a discount to retail prices. It offers its products to the members of its Website via a "flash sale" or "daily deal".
Well, the following Monday (this must've been April 16th, as the price was still below $1.00) I decided to nibble abit, picking up several K shares.  Over the ensuing weeks, the stock in this no-as-yet-reported-revenues ecommerce "flash sale" site of "luxury" goods has zoomed up 100%.  Is this destined to last?  Will this company, building itself through acquisitions of similar sites (just bought site earlier this week, and pumped up its authorized share count to 550M), really grow into an ecommerce powerhouse, or will this growth-by-website-gobbling land it in the pennystock trash heap with MobilePro, a failed wi-fi telecom company which I followed into the stratosphere and back to earth 5+ years ago?  What do you think?


[Note: okay, I'm wrong about revs - in their 10-K they reported some $2,038 in revs for fiscal year ending 12/31/2011.  But that's close to none...]

[5/15/2012 - I followed my normal sell rule (sell only when you need funds for another venture), and got out of LUXR at about $2.00/sh. In hindsight, since it has sagged 25% in the intervening days, I may reconsider and move back in should the price approach $1.00 again. Otherwise, I'm watching my long-time fave penny, LSCG, which has been gapping higher due to exposure at an annual lighting convention, coupled with a 10-Q filing.  ..TS.]

1 comment:

  1. I have been trading LUXR for a while now. I got alerted well before the volume started to pick up and because of this I was able to score a nice profit a few times. The report helped me understand the complete scenario and the pros and cons. It’s always best to buy before everyone else does. Check it out at (Kindly, copy and paste the link in to your browser.)