Blue Calypso Inc (OTCBB:BCYP) Gets a Stronger Push

Just a few hours from now, the much-awaited conference call with Blue Calypso Inc (OTCBB:BCYP)’s management team should start. It will definitely be interesting to hear what they have to say, but until we do, we decided to take a look at the recent developments around the ticker.

As we mentioned in our previous coverage, the stock performance since the beginning of the month has been somewhat controversial. The ticker started off well enough and during the first week tried to challenge the $0.19 per share mark – an attempt that turned out to be unsuccessful and instead of rising, BCYP experienced a rather substantial correction, at one point even reaching as low as $0.15. Recovery was not out of the question, but the run displayed by BCYP exceeded all expectations.

Out of the nine sessions between October 18 and October 29, only two ended with minor losses which means that a new 52-week high of $0.2175 was registered yesterday. The first minutes after today’s opening bell were also quite interesting – BCYP managed to reach as high as $0.23 and although right now, about an hour and a half into the session, it has calmed down a bit, there’s still plenty of time for another run.

Traders seem quite optimistic and the headlines that appear on the company’s Yahoo! Finance profile certainly suggest that things are looking bright. As we mentioned a couple of weeks ago, press releases have informed us about a new financing deal and about the launch of their DashTAGG mobile gamification platform.

Since our latest coverage went online, Merriman Holdings Inc (OTCMKTS:MERR)’s subsidiary, Merriman Capital, Inc. (an advisory-focused investment bank) announced that they have updated their rating for BCYP from “Speculative Buy” to “Buy”. We wanted to check through their full report and see what their estimations are based upon, but it would appear that, at the moment, the link provided in MERR‘s press release is broken.

BCYP themselves also made an announcement. About an hour and a half before Monday’s opening bell, they informed us that they have appointed Tom Moore as their new Vice President of Sales. Bill Ogle, BCYP‘s CEO seems genuinely excited about the new addition to the management team and, judging by Mr. Moore’s professional experience, rightly so. The enthusiasm has been spread among investors as well and, especially with the upcoming conference call, this could result in a couple more green sessions.

That’s all well and good, but we mustn’t also forget about the factors that could potentially put a spanner in the works. As we mentioned already, BCYP recently sold around 7.7 million shares for $1 million which brings the purchase price to $0.13 per share (a solid discount compared to the current levels). The stock is restricted at the moment, but once the restriction falls, it could put enormous pressure on the price in case it gets unleashed on the open market. The effects might be minimized if the company turns profitable, but unfortunately, estimating the chances of a positive bottom line are extremely hard due to the lack of any up-to-date financial information. The Q3 results should be out soon but even if they turn out to be positive, they won’t stop BCYP from crumbling in case the lawsuits against Yelp Inc (NYSE:YELP), Groupon Inc (NASDAQ:GRPN) and Foursquare Labs, Inc. turn sour.

Of course, if the wind is fair and if everything goes according to plan, BCYP could be in for some considerable growth. Still, considering the two sides of the coin is never a bad call when dealing with penny stocks.