A 50- and 200-day moving averages cross appeared on LFBG stock chart yesterday, usually considered by traders a bullish signal, but the share price of the stock closed at $0.0115, a fall down of 4.17% from the previous close. Trading volume was more than twice the average, suggesting that probably the true price corrections are yet to begin.
The shares of Left Behind Games have experienced a sharp increase in the price since the beginning of the month. Unfortunately, that looked like initiated by free trading alerts on the stock, as the overoptimistic press releases by the company did not comply with its absolutely unenviable financial condition.
On Monday this week, the company filed with the SEC a notification of late filing of the quarter report for the three months ended September, 2010. Thus, those interested will have to be patient to see if all the recently announced new orders and boosted sales are actually for real.
Maybe today LFBG will repair the price correction from yesterday. Some optimistic expectations were again announced shortly before the market closed yesterday and raised immediately the trading volume. CEO Troy Lyndon said that revenues are expected to exceed $1.3 million this year. The optimism goes even further and the company plans to apply for listing on the NASDAQ or NYSE.
The chances are not so good though. At the end of June, Left Behind Games had almost six times more debts than assets and the currently $34.36 million market cap is mostly due to the large number of nearly 3 billion shares outstanding.
