Sometimes the augmented reality about the shares’ performance shows details that always raise a lot of questions and disputes. One of them is the dispute about the selection of trusted methods when an investment decision is taken.
Ultimately, it is up to the investors to decide to what extend to use the technical analysis and to what extend to utilize the ratios offered by fundamental analysis. But, sometimes it looks like different methods may give some contradictory results, which makes investors feel schizophrenically.
This maybe was the case with the performance of Artificial Life, Inc. (OTC:ALIF) stock.
Finally, investors with a speculative interest won the battle for ALIF these days. No matter what methods they used, and how opposite the conclusions were.
Over the Internet, some fans of technical analysis were preaching the downward trend of ALIF. On the other side, as opposed to the noise of the recent dismissal of the company’s auditor KPMG and the not yet disclosed 10-K report, even the previous financial statements are somewhat suggesting that the bullish mood for company’s shares may be kept.
Further more, this Wednesday Artificial Life, Inc. made a more than optimistic update. According to it, as of the end of this March the number of ALIF product downloads exceeds 58 million. The company reported also that it sold its games in a total of 90 countries worldwide.
As a response to the news, the same day the shares of Artificial Life, Inc. soared 4.76% between the sessions to pull back 5.71% within the trading day in unison with some speculative strategies. This was one of the signals of the started share price suck.
Yesterday, the exhausted stock of Artificial Life, Inc. slumped 26.52% to close at $0.485 per share. This was not a typical trading day for ALIF.
This was a Black Friday for the company’s stock. The noted new low was the lowest low for ALIF price in its almost six years of trading history. The heavy trading volume caused a maybe unjust speculative crash, backed up by a nine times the average share turnover.[BANNER]
This Monday and Tuesday, the shorted volume for ALIF represented 60% of the total volume traded. After a slight decline on Wednesday, to drop to 20% yesterday.
All this happened on the day on which Artificial Life, Inc. announced anticipated revenues within the range of $40- $42 million, compared to $27 million for the year ended December 31, 2009. The income expected is up to $12 million as compared to $7 million for the last year.
Who knows, the optimistic opening of today’s trading session with a 1.03% increase in the share price may be a signal that in the forthcoming days technical and fundamental analysis will show a consensus about the upward movement of ALIF.
