Today shares of Legends Business Group, Inc. (OTCMKTS: LGBS) are up over 33% on a massive increase above its average daily trading volume. So far this morning LGBS has traded over 19 million shares to be one of the top traded stocks today on the US OTC market. You can see from the chart that the stock is now sitting right at 0.0004 cents a share, which has been long-term resistance on the stock for over ten months now.
Will it be able to close above this 0.0004 resistance level now? That will be an interesting move if it does as last year in March the stock soared when it last broke through that price barrier. There is no real news to explain today’s trading volume and the stock is essentially that of a shell company with no real operations. The market cap is less than a million dollars.
The entire move today may be due to speculation based on a tweet made by the company:
New direction, new management, please be patient.— Legendsbusinessgroup (@Legendsbusiness) January 30, 2020
Last year when the stock move up the company put out a news release announcing a reverse merger with a cannabis company, but since that news there have been no further developments about it nor has the company made a filing with the SEC. It also announced similar news in 2016 and 2014 and nothing happened. This makes this an extremely speculative situation. I have the stock on my radar, but it is too speculative for me to get involved with right now. I’m currently more interested in some big and small cannabis stocks with more solid news.