Live Ventures Incorporated – Nasdaq: LIVE
Live Ventures Incorporated Inc. is facing accusations that it manipulated material financial information to boost the price of its stock. Traded on the Nasdaq, LIVE shares traded near $30 after an earnings report that exceeded analyst expectations. On Friday, shares of LIVE closed just over $18 on very heavy volume.
On Friday published reports accused Live Ventures of paying $2 million to aggressively hype its shares. Unconfirmed reports suggest that recipient of the payment was a firm that had previously hyped shares of ForceField Energy – a stock that was delisted and went to $0. Reports further allege that Live Ventures created one-time gains in earnings through various discretionary, questionable accounting methods. The report further allegedly suggests that the reported GAAP earnings for the last quarter are suspicious and that the true earnings figure should have represented a loss and not a profit. Reports claim that the cash-on-hand valuation of LIVE stock is $0.28.
In response, Live Ventures issued a press release claiming that CEO John Isaac had purchased $250,000 worth of LIVE on the open market. “The purchase of this stock is representative of my confidence in the potential of Live Ventures stock, as well as the continued execution of its business plan,” Isaac says in a statement.
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