Anavex Life Sciences Corp (AVXL)

[Steady_T]

It's called momentum. There is a whole class of investors called MOMO players. They see momentum building and they pile in buying increasing the upward momentum when they sense a top they bail out. The 116 million shares day Anavex had is an extreme example of the MOMO players at work. This usually does not create a sustainable increase in the share price.

There are other investors that see a stock start to run up and they feel like they are missing the train so they start chasing the stock to get in as it runs up. FOMO... fear of missing out. These investors tend to become another class of investors called bag holders.

I hope what you are referring to is the situation where the information around a stock turns positive with a solid foundation being put in place for real growth and profits. The value investors see that situation and start buying what they perceive as a mispriced stock causing the share price to move up. That share price movement attracts attention from other investors who look at the DD and see the same potential and buy in continuing to push the share price higher. The increasing share price causes more awareness of the company i.e. more eyeballs. That increased awareness becomes large enough to create media stories which can become an exponential increase in awareness. The positive feedback loop you were referring too kicks in and the Anavex rocket launches.

Just my thoughts on the question you asked.