The volume spike shows well on the chart the effect of the alerts on LYFE yesterday. RSI and some other technical indicators show that LYFE could accumulate more volume today and go above the 40 cents level, especially if more promoters start alerting the stock to their subscribers. Yesterday LYFE closed at $0.36 and got a 44% jump in the closing price and a never seen before record trading volume of over 213,000 shares.
Yet, LYFE has been on an uninterrupted downtrend since it got actively traded at the beginning of last year and has lost by now almost everything, considering the 52-week high of $3 for a share last June. The financial condition of the company and its operating results are also rather disastrous and the news from Monday afternoon that LYFE has completed the development of a virtual Set Top Box (vSTB) hardly attracted any significant interest. LYFE Communications will file its latest 10-Q with a delay, and the the previous available reports are far from impressive.
At the end of September 2010 the company had $0 cash, but over $1 million in short-term liabilities. Total assets are $1.45 million, but the largest part of them is classified as “other” and are related to certain still uncompleted agreements.
In an attempt to raise the need cash for the development of its technologies, last year year the company had agreements to raise $15.2 million through the sale of “restricted securities”. From that amount only $1.6 million were actually received and the management is not optimistic that the offering can be completed. There is no guarantee whatsoever that funding will be available at all and at any terms, but traders may still hope that some more news and promotions could bring positive and short-term effects for LYFE stock.
