Just when discussions of possible $1 per share start to form, Cyclone Power Technologies,Inc(PINK:CYPW) experienced a cool down on the stock market. It would really be a short-lived success of the positive news coming out recently. Nevertheless, it is not the performance on the stock market that is of vital importance right now, but another aspect of this company.
It is a fact that Cyclone performed very well on the stock market recently. In a matter of several days, the stock almost doubled, Tuesday session closing at $0.37 per share, supported in terms by almost two million shares changing hands that day. Yesterday, however, it seems that the trading frenzy was over, as half the trading volume occurred, while the price dropped slightly to $0.36 at the end of the day.
Now, as mentioned, it is not the stock performance this week but that in the next months. All speculations about $1 per share aside, there is the possibility for real hype to form if the news turns into revenues. After all, when a pink sheet company works together with a major player in the defence and security industry, this is indeed a reason to keep an eye on how this relationship develops. In this aspect, even if the effect on traders from the news from Tuesday is now over, it is of little importance. [BANNER]
What is important, is that Cyclone takes the necessary steps in order not to be a pink sheet company anymore. Also, despite the numerous potential clients visiting the factory and placing small orders etc, it is high time that at least some products of the company get picked up by major players like Raytheon. Otherwise, it seems that while traders are affected by optimistic announcement, it could not be a lasting effect and the stock might just as fast return to its levels around $0.2 per share or below. Which, in terms, is not what both the company and the current shareholders might be aiming for.