After a three-week silence, CopyTele, Inc. (OTC:COPY) has finally made a breakthrough on the stock market.
Last Friday, its stock added 22.22% to its value, ultimately closing the session at $0.33 per share. The price surge occurred on a significant spike in the volume too. By the time Friday’s session came to a close, the turnover went beyond the 290K mark, or 50% higher than the average daily trading volume.
Ironically enough, COPY’s Friday market performance cannot be attributed to any press releases. Nor has COPY stock been subject to any heavy promotion recently. Nevertheless, a 22% jump is quite a decent score on the pink sheets quotes.
Copytele, Inc. occupies the technology sector. It is focused on developing, producing and marketing thin flat display technologies such as low-voltage, phosphorus-coloured displays and low-power passive E-paper displays. In addition, the company is a manufacturer of multi-function encryption products designed to provide information security both domestically and internationally.
As a diligent SEC filer, COPY submits its financial reports on a regular basis. The latest 10-Q form surfaced last week. Covering the period ended Mar. 31, 2011, the company’s unaudited balance sheet revealed:
- $350K in cash vs. $1.1 million in Q3 of 2010;
- working capital surplus of $1.23 million as compared to $0.78 million in Q3 of 2010;
- net revenue of $103K vs. $360K six months earlier;
- net loss of $2.81 million in comparison with $2.78 million incurred as of Oct. 31, 2010.
Although COPY appears to have a positive working capital score, it is not big enough to cover the losses, let alone the five-million-dollar loan payable in due course. To continue operating as a going concern, the company will either have to come up with new commercially viable projects, or introduce its current product portfolio to a larger customer base.
