Cybergy Holdings Inc (OTCMKTS:CYBG) Bounces at Last
Cybergy Holdings Inc (OTCMKTS:CYBG)’s shareholders have something to cheer about. After it plummeted from over $1 per share to less than $0.20 in a matter of just over a month, their stock is finally moving in the right direction.
A couple of small steps were made on Monday and Tuesday, but yesterday, CYBG really picked up some speed. After a 25% jump and a dollar volume of around $135 thousand, it stopped at exactly $0.25 per share. The surge itself is good, but it probably won’t do much to lift the mood of the people who were buying CYBG back in May when the ticker was sitting at more than $1. It could give them some food for thought, though.
They’ll probably ask themselves whether the bounce is of the dead feline variety or whether it’s suggestive of a more prolonged movement in the right direction both for the company and its stock.
The pumpers are now gone which is definitely a good start. As you can see from our database, CYBG saw quite a lot of promotional action between April and June and the effects were absolutely catastrophic. The last email hit our inbox on June 21, however, and although you shouldn’t ignore the possibility of the pumpers coming back in the future, at least for the time being, the ticker is left to its own devices. And it’s performing admirably.
The news doesn’t sound too bad, either. The latest press release came out ten days ago and with it, CYBG announced that they expect to double the dollar value of their new business pipeline before the end of the year. If that happens, it will be quite an achievement considering the 25% year-over-year revenue drop that the company experienced during the first three months of 2015.
There are quite a lot of investors around the message boards who reckon that the people running the company have the expertise to make good on their promises, but unfortunately, those of you who like to base their investment decisions only on facts and figures will be forced to wait for the Q2 report which won’t be out for another few weeks.
For them, CYBG‘s future is riddled with unknowns which means that they will spend a lot of time wondering whether buying the stock at around $0.25 per share is really worth it. While they’re doing it, other people might be getting shares at a much lower rate.
As we mentioned several months ago, CYBG has a substantial amount of convertible debentures which can be turned into Series C preferred shares at a rate of $0.44 apiece. The Series C shares can then be converted into common ones at a rate of 1 for 10 which means that the debenture holders can effectively turn their debt into common stock at a rate of $0.044 per share. In addition to this, during Q1, the company raised some money by selling more Series C shares at a rate of $1 per share.
The underlying shares are subject to registration and CYBG filed the S-1 form in mid-May. It could be declared effective by the SEC at any time.
