Kaloyan Gadzhev

Cyclone Power Technologies Inc. (PINK:CYPW) Testing a Support

by Kaloyan Gadzhev June 14, 2011
4CYPW_chart.pngIn late-April, Cyclone Power Technologies Inc. (PINK:CYPW, CYPW message board) made a significant move up after they had announced a demonstration made for Florida Representative Allen West, and an order placement.

Yesterday, CYPW dropped 4.92% to $0.29, a resistance-turned-support. The volume of 453 thousand shares was slightly above the average recent values.

There doesn't seem to be any particular reason for the drop. The latest PR CYPW issued is from last Tuesday, and it merely informs that the company and Team Steam USA presented their car at a car and truck show in Florida.

CYPW published their quarterly report on May 16. It sparked a small run up, but it seems it is all but gone now. The report showed the company was still primarily losing money, and is likely going to do so for now. The primary forms of financing will remain debt and equity.

Although the financial situation of CYPW is not great, the recently announced order placement gives hope to investors. Should their plans work out, shareholders may get some profit.

31CYPW_logo.jpgTraders should, however, keep in mind there are some warrants and options which could hurt shareholder investments in the future. For now, it seems the support is holding.

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