Blue Calypso, Inc. (OTC:BCYP) Recovers Losses, Adds a Third

Another small cap company is gathering upward momentum- this time, it is Blue Calypso, Inc. (OTC:BCYP), which is marking a five-day buying streak, gaining more than 31% to 35 cents per share. This stock is escaping the valley where it fell after the February promotions. The new climb is fueled by press releases and financial data. BCYP repeated its record volumes from the promotional time in February, as more than 750,000 shares were bought up. BCYP0424.png

Currently, BCYP is capped at around $49 million, with more than 138 million shares outstanding. The company works with innovative modes of web advertising, trying to use social media for word-of-mouth campaigns. Financially, the company has the following resources to make the business model work:MSSD0424.png

  • $218,798 cash
  • $265,718 current assets
  • $1.04 million total current liabilities
  • $74,584 revenues
  • $5.11 million annual net loss

BCYP is yet another company that has big plans, but also large debts and a breakeven point is not easily seen. The company is betting on people’s time and attention, perhaps the most scarce resource in a world overwhelmed by technology. But whatever business success the company may see, its stock movements may be guided more easily by sentiment and investors’ interest.

The company has another daring project- suing Living Social, Inc. for patent infringement. The trial is still in very initial stages, but the company does not miss to update every step, as it means more media exposure. So beware the sudden interest- it may be caused by yet another reminder posted to a financial news website.

The last promotion for BCYP had a budget of $80,000 for 15 emails, concentrated around February 4th. Some of the emails mentioned that their penny stock selection could beat Facebook and other leading social media. Among the highest-paid pumpers was StockEdge.com, receiving $50,000 for the messages. Currently, this promoter took up another big promise, Massive Dynamics, Inc. (OTC:MSSD). This penny stock company promises to ride the new hottest trends, making Apple and Android software products, and playing with 3D printing. However, the stock fizzled out long before the amazing products could take over the world.

BCYP is indeed loud and visible, but keep in mind this stock has been capable of sharp corrections in the past, and the latest climb may be a temptation to sell for profit. It is best to stay away from any sharp and fast trends unless you are certain the losses will be affordable.

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