Internet Stock Shock

Proving that it takes more than just slapping the word “Internet” on a press release to pump up a company’s stock price, Lake Forest-based L.L. Knickerbocker Co. saw its stock fall 20% Thursday, even after announcing that Internet sales have nearly quadrupled every quarter for the last five quarters.

The company, a retailer of collectible porcelain and vinyl dolls and teddy bears, has suffered heavy losses the last two quarters. Its stock hit a low of 47 cents on Christmas Eve, after trading as high as $7.88 early last year.

On the day it issued its news release trumpeting “accelerated growth of combined Internet sites,” Knickerbocker’s stock fell from $1.19 to 95 cents on trading that was 21 times its normal volume. The day before, the company’s stock had shot up 82% in even heavier trading, but by the end of the week, it had lost almost all of those gains.

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Jonathan Gaw covers technology and electronic commerce for The Times. He can be reached at (714) 966-7818 and at jonathan.gaw@latimes.com.