continued and the traded volume of LFVN reached approximately 2 million shares. Considering this fact, obviously something has pushed up the stock price again.The only explanation on the high trade appears to be yesterday’s promotion for LFVN. According to the records, the stock appeared on a bunch of promotional websites, pointed out as “Fountain of Youth” with an average life increase of 30-50%. This definition certainly provoked traders’ attention and LFVN climbed higher. But is there a better reason for the up move?
Along with the promotional stock alerts, yesterday Lifevantage released an update on its preliminary unaudited quarterly results. The company reported that along with the net revenue of approximately $7.4 million, it was expecting operating income of at least $500 thousand in the second fiscal quarter of this year. The optimistic release immediately struck investors and additionally supported the stock price. Now it’s interesting how far the stock will go.[BANNER]
Lifevantage Corporation is a network marketing company that manufactures and sells dietary supplements with anti-aging effects. Last year, LFVN stock has had sharp price changes, though since last Dec. 22nd the price started to increase. However, the present up move seems to be based on promotions and optimistic projections, while the future results are yet expected.
According to its latest 10-Q report, during 2010 LFVN achieved several optimistic numbers. The company has generated higher revenues as compared to the previous quarter, however, in terms of current assets and total liabilities the numbers are quite disturbing: $3.8 million against $17.7 million respectively. Apart from this, the stockholders’ deficit exceeded $11 million, while the total accumulated deficit reached over $36 million. These are shocking values for a company and while Lifevantage is projecting a bright future it should instead find a better way to cover the losses.
