Poynt Corp (CVE:PYN) (PINK: PNYTF) is closely followed by traders after the stock moved up 40% on Tuesday with no specific events triggering the buying boom.
One of the highest trading volumes recorded this year was 7 times the 90 day average and together with price performance provided plenty of buying opportunities. The stock entered the market today with a still burning momentum, gaining nearly 5% on so called morning spike, but profit taking clearly took the higher hand afterwards.
Poynt stock has a history of volatile price action so this run-up is nothing unusual. The commotion is likely a result of the upcoming changes in the industry Poynt attempts to take advantage of. Apple is planning to start shipping new iPhone in February and RIM just launched their PlayBook, which should be used with BlackBerry phones if you want secure email apps.
However, Poynt related fundamental reasoning behind this rally is vague. Despite the booming smart phone industry, a provider of mobile local search services, oriented mostly to BlackBerry and iPhone product families, is still struggling to get their apps to deliver gains for the business:
- Operating revenues remain in hundreds of thousands;
- Quarterly expenses top couple millions of dollars;
- $71 million market cap is mostly based on the potential of smart phone industry as PYN is merely worth $8.7 million in book value.
The company’s value is mostly intangible, and their cash on hand can’t even last them for one quarter without additional fundraising.
