Las Vegas From Home.com Ent. Inc. (CVE:LVH) (PINK:LVFHF) continued with the usual downtrend in price today after shorters took an opportunity to enter on the previous day's rally.
LVH lost another 21% today reminding traders that yesterday's price action was more of a fluke. A strong trading volume of 1 million was recorded on Tuesday, which clearly attracted attention and caused an overnight sell orders to build up - the uptick was clearly a great opportunity for shorters to enter on the downtrend.
The share price opened lower today as there was no news that could have supported the unsolicited price move from the earlier day. LVH stock is rather illiquid and the price carried increased volatility over the past couple days.
$0.08, which served as a questionable support from late 2010, has now become resistance, further favoring the bears. LVH remains in a strong downtrend and with their poor fundamental situation it's very likely to continue. The last reported quarter provided unsightly numbers:
• Working capital deficit of $54 thousand;
• Net tangible worth of only $1.2 million;
• Minor and heavily fluctuating revenues;
• Constant net losses;
• Negative quarterly cash flows.
The company raises millions of dollars through sale of additional shares to cover for losses every quarter and thus adds to the stock dilution. Their market cap of $15.4 million is clearly unsustainable because of such questionable fundamentals.
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