Anavex Life Sciences Corp (AVXL)

[Gator328]

This is mostly correct. Sometimes large funds recognize they are late to the game, or that an upcoming catalyst is imminent and they’ll try to acquire cheap shares by “shaking the tree” and seeing who will sell to protect profits or minimize losses. Once they’ve taken a position the stock price will begin to climb toward intrinsic value.

But that’s not what happened yesterday. Anavex was the victim of bad timing. A forced Sunday PR because of a weekend presentation + an overall down day in the market led to reduced momentum as money went to the sidelines as fears of recession grow stronger.

You are correct that had this news event been a revenue defining moment it would have had more buyers than sellers. The fact that Avxl closed red doesn’t mean the PR data was negative or unimportant. It means that the data was not urgent.

Less sophisticated investors and most traders fail to understand the distinction.