When there’s a will, there’s a way. Similarly, when there’s a pump, there’s a dump. If you saw the last two market performances of LYFE Communications, Inc. (OTC:LYFE), you’ll definitely get my point.
Two days ago, LYFE came up with an official press release, informing investors about its new advisory board that was now solely comprised of ‘leading media executives’. While it is by no means the most ground-breaking news LYFE could have come up with, it must have worked for third parties as the latter immediately embarked on a promotional campaign by pooling $2.5 thousand to raise awareness about LYFE stock.
As a result, LYFE stock went up 10%, closing Wednesday’s session at a two-week high of $0.0995 per share. The surge occurred on a 12-month record-breaking volume of 520 thousand. No wonder it was light years away from the average trading volume of 48 thousand.
So far, so good. However, investors’ hopes of a continual surge were dealt a blow yesterday when the promotion finally took its toll. By the time the trading session came to a close, LYFE stock had sunk by more than 26%, ultimately clocking in at $0.0734, slightly above its early-June level. The turnover, on the other hand, ended up nowhere near the 0.5 million mark with only 120 thousand shares changing hands.
The new advisory board might give LYFE a boost, especially if its members do turn out to have a thorough grounding in the media industry. Yet, until the company issues some commercially viable projects, its stock will continue to fall victim to promotional tweaks without being able to withstand them.
