NW LA: I feel your pain. It's a decision you have to make for yourself. The company has a chance to survive if a lot of things go right in the next 6 months. First and foremost the company has to raise money. There are no two ways about it. They need at least $3.7 million above what they had at the time the last 10-Q was filed just to last until the new facility is completed and paid for. Can the new CFO and all the penny stock "consultants" find enough buyers to be able to raise that kind of money? And if they do what is going to be the "cost" in terms of additional dilution to the current shareholders? As you have read the valuable information provided by Thruthurts....many of the large holders of CYGX got their shares for peanuts....either free of at deeply discounted prices. So they can afford to wait and see. Others such as yourself have a more difficult decision going forward.
If they raise sufficient capital, and that is a big IF, then they need to land a substantial contract soon thereafter to justify the expense of building that facility. A government contract for something like a brucellosis vaccine for cattle would be nice and it would insure the viability of CYGX. I don't expect that sales of synDNA to private firms would be of sufficient quantity to insure CYGX's viability. Their likely customers would be 2nd and 3rd tier pharmaceutical/vaccine manufacturers. Are any of them close enough to even a Phase III study that would generate sufficient demand for plasmid? I don't think so. But a government contract would buy them time for the plasmid market to mature and expand. That is probably 3 years away.
So, in the short term look at the financial picture as officially documented in the SEC filings. Malcolm has to certify those figures as accurate. If they raised sufficient money to survive then I'd probably hold on to shares for now (if I had any). If the 10-Q continues to show a precarious financial picture with available funds less than $300,000 and meager synDNA sales and revenue then I'd probably advise you to bail and declare your losses for tax purposes. You can deduct all losses against any capital gains. If your losses are greater than your capital gains on other securities you can take up to a $3,000 loss against earned income. If your losses are greater than $3000 you can carry over losses to later years until the entire loss is declared.
But in all honesty I think the chances for a successful outcome here are limited. A lot of things have to go right for the company to succeed. I think Malcolm's associations with a lot of these penny stock operators is born out of desperation for capital. He can't raise money through legitimate venture capital firms or legitimate brokerage houses so he has to resort to these dubious "consultants". If CYGX had $5 million in the bank I'd give them a fighting chance to survive. But a lack of capital has retarded their progress for years. Perhaps too long.
One final thought. Sometimes peace of mind comes at a high price. I took a small loss on this turkey after I had a pretty big capital gain on paper when the share price hit $1.54 almost 2 years ago. But I stayed in too long. It was stupid of me but another lesson learned. But I appreciate the peace of mind that comes from observing this soap opera from the outside. I can say that in all honesty I never, ever in a million years would have invested in this company if I had had all the info that Mr. Truthurts has put forth for us in the last several weeks. Potential investors should look at his research carefully. There are other, better places to invest money. Good luck to you in whatever decision you make.
AI
