New 52-week Lows For Blue Calypso Inc (OTCMKTS:BCYP)
The recent chart performance of the stock of Blue Calypso Inc (OTCMKTS:BCYP) has been a total nightmare. In just six sessions, between May 9 and May 16, the ticker dropped from an opening price of $3 per share to a close at just a little over a dollar. The financial results for the first quarter that the company announced after the end of Monday’s trading failed to change the negative sentiment towards the stock – after closing flat on Tuesday yesterday BCYP resumed their devastating slide towards the bottom of the chart and now they stand at just $0.831 per share. During the session a new record 52-week low of $0.80 was registered.
The severe crash of nearly 21% from yesterday may seem rather strange in light of the fact that BCYP finished the first quarter of the year with a 128% increase in revenues on year-over-year basis and no outstanding convertible notes. The problem is that these achievements are simply not enough to offset the rest of the numbers found on the balance sheet. As of March 31, 2016, BCYP had:
• $212 thousand cash
• $647 thousand total current assets
• $248 thousand total current liabilities
• $263 thousand revenue
• $884 thousand net loss
As we said, compared to the same period last year, the revenues are up by nearly $150 thousand but the company didn’t get any closer to having a positive bottom line with the operating expenses growing by nearly $400 thousand while the loss increased by almost $300 thousand. At least back in April BCYP managed to strengthen their financials by selling 609,756 shares and warrants for the purchase of the same amount of shares for gross proceeds of $1 million.
After settling their lawsuit with Yelp back in September 2015 BCYP have now also settled in principal all outstanding litigation against Groupon. On May 5 the company entered into a memorandum of settlement but this time the terms of the deal have not been disclosed. As for the patent infringement lawsuit against Foursquare Labs, Inc. a trial date of September 21, 2016, has been set.
After such a rapid depreciation in such a short time a bounce of BCYP‘s stock wouldn’t be that unlikely. Still, the risks around the company shouldn’t be underestimated and any trades should be performed only after doing your own due diligence.
