Found this at yahoo:
9/29/09
The effect of an update on operations and financial condition Cape Systems Group, Inc. (PinkSheets: CYSG, CYSG message board or CYSG.PK) issued a week ago is slowly fading away and the stock price is re-evaluating after the initial rally. It is difficult to say whether there's still enough steam to push the price up after the profit taking sell-off, but predicting is always fun.
The bulls seem not to be giving up and after some sell-off, the price still moved up on Monday. On the other hand the company's stock has never traded at current levels, so it is impossible to establish an adequate resistance point. At the time it stays somewhere at $0.004, but that level is not too strong of an indicator as price only touched it once. Meanwhile the price might get back to previous support level of $0.0005 with little effort.
All that matters at the time is if the company's fundamentals have improved enough so that the stock price adjusts and stays up. As Cape Systems is a non-reporting entity a clear view cannot be established, but elimination of 15.3 million in debt is a good sign. Gross profit has decreased $0.3 million since Q2 2008 suggesting the decrease in revenue. Excluding the special items there was a $0.4 million loss, up $0.1 million from previous year.
All this adds up to worsened performance, but decreased liabilities. That is enough to push the stock price up temporarily, but will hardly have any effect in the longer term. Another good thing is that the company gave us at least some update letting to know where they're headed. On the other hand, this might have been an attempt to boost the stock price and increase general interest in it before turning to equity financing.
AI
