Georgi Kamburov

Blue Calypso, Inc. (OTCBB:BCYP) Slides Down

by Georgi Kamburov July 31, 2013
BCYPchart.pngYesterday Blue Calypso, Inc. (OTCBB:BCYP, BCYP message board) dropped for a third day in a row. This time the tumble was quite serious losing 15% and closing at $0.147. It seems traders decided that the time to shed their holdings has come and traded volume reached the impressive 2.2 million shares, nearly tripling the average for the company.

Blue Calypso is engaged in what they call digital word-of-mouth marketing and advertising. They have some operations that helped them achieve the following financials for the last quarter:

  • $64 thousand cash
  • $83 thousand total current assets
  • $515 thousand total current liabilities
  • $10 thousand revenues
  • $970 thousand net loss

In the four years since its inception BCYP has been able to accumulate the "impressive" deficit of $8.3 million. Seeing these numbers it becomes obvious that the fundamentals of the company aren't the reason that has been attracting investors.

No, that honor goes to BCYP's patent portfolio that currently contains 5 different patents and two patent applications. Using them the company has filed infringement lawsuits against some major companies in the likes of Yelp, Groupon and Foursquare. On July 25 BCYP announce a settlement according to which MyLikes has agreed to pay a 3.5% royalties in order to use their patents. How much are these 3.5% worth in actual funds remains a mystery for now.

The company can rely on a couple of catalysts with the earliest hearing for the trial against LivingSoical set for August 19 while the rest should be held in November. Until then the stock remains subjected to high volatility and a risky bet as a whole.

ENZRchart.pngYesterday exactly as we warned you the stock of Energizer Resources, Inc. (OTCMKTS:ENZR) began correcting and at closing time they wiped a fifth of their value. The company made a sharp jump on Monday after they announced the results of some tests carried with graphitic carbon but the hype proved to be short-lived because today they are going furhter down by 14% in early trading.

Arch Therapeutics Inc (OTCBB:ARTH) also spiraled downwards and are now closing in on half a dollar per share despite the $3 million pump campaign that has been running for them since the start of the month.

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