On Thursday last week, Lifevantage Corp. (OTC:LFVN) issued its latest press release after keeping silent for almost two months. It looks like the announced preliminary financial results evoked again positive expectations among investors and the share price jumped up. On Friday, however, LFVN new position did not look that stable. 
The stock closed Friday’s session with a 2.47% decline at $1.58 for a share and a trading volume of over 972,000. However, shortly after the market opened LFVN share price dropped to $1.45, while Friday’s peak was at $1.70. That was also the highest value since the middle of May, and it seems like it could establish as a resistance.
LFVN press release from last Thursday morning seems like the reason why LFVN got so volatile in the last two trading sessions. Maybe it came out unexpectedly, announcing certain preliminary financial results of the company for the forth quarter and the fiscal year ended June 30, 2011.
According to LFVN PR, for the forth quarter of fiscal 2011 the company will report revenue of $15 Million, which is more than twice the revenue for the same period last year, the increase from the third quarter being 50%. The management also anticipates a forth consecutive quarter with a positive operating income. Positive results have been given also for the fiscal year end, yet the full report should come out by the end of September.
Until then, it should be pointed out that the last 10-Q did not contain only positive data. As of end-March 2011, LFVN had convertible debentures outstanding that could result in over 16.2 million new shares of common stock upon conversion. Subsequently, some debentures were converted into 1.20 Million shares, while certain warrants were also exercised and 7.1 Million shares were issued. Another over 8 Million shares were issued upon the exercise of stock options.
