Cybergy Holdings, Inc. (OTCMKTS:CYBG) Devastated by a Drop
Just a few days ago shareholders were clenching their teeth as Cybergy Holdings, Inc. (OTCMKTS:CYBG) lost over a quarter of its market cap in a single session. This drop pales in comparison to yesterday’s devastating 52% drop. CYBG stopped at $0.39 by the closing bell on its heaviest volume ever.
The company has been the target of an extended paid stock pump that started in mid-April. There have been about 60 promotional emails targeting CYBG to date. The pumps are relatively cheap, with the most recent ones peaking at $9,000 compensation per email. The primary paying party for the newer pumps is Cream Consulting – the same entity that paid for the late May pump of Valmie Resources, Inc. (OTCMKTS:VMRI), which crashed over 40% within two days from the first tout email.
CYBG is a cybersecurity pink sheet stock. Its latest quarterly went online on May 15 and listed the following:
- $83 thousand in cash
- $87 million in current liabilities
- $6.5 million in Q1 revenue
- $1.2 million in Q1 operating loss
The company’s revenues stem from a contract with the Department of Energy. However, despite the sizable quarterly revenue figure, CYBG still logged operating losses. The quarterly report states that CYBG does not have enough money to make it until the end of 2015 and will need to obtain “significant additional capital”.
As of May 14 the company had 20 million outstanding common shares, hence its modest market cap despite its relatively high share price for a pink sheet. There are, however, 3 billion authorized shares.
After yesterday’s massive selloff, CYBG is now heavily oversold, so a technical bounce from those new lows is not unlikely.
