Cryoport, Inc. (OTC:CYRX) Interest Revived on Business Outlook News
If you want to put your project on ice, Cryoport, Inc. (OTC:CYRX) is there to provide the most high-tech solution, as it services the biotechnological industry with proprietary sub-zero freezing containers and infrastructure. The ticker has tripled in price since the beginning of the year, and has shown potential to increase its daily volume. Around 50 cents, CYRX may raise the hopes of investors as it is on a minor climbing trend and has shown potential for even higher liquidity.
The ticker is not in our pump history, and the most probable reason is the PR reminders appearing in business news sites, as well as the generally respectable nature of the business and the true demand for cooling equipment. Cryoport has the challenge to justify its current stock price, mostly flat over the years, with the following financial strengths and weaknesses:
- $1.66 million cash
- $1.9 million current assets
- $2 million total liabilities
With an 18 million market cap and over 37 million stocks available, the company resembles many bets in the pharmaceutical industry, which could make it or break it with great variability in stock price depending on general sentiment for the success of the business. The company shows $233 thousand in revenues and $1.5 million net loss, so there is danger for the business to be piled over by debt and accumulating losses. On the good side, the company services the vaccine activity of giant Pfizer with its cryogenic carriers, coupled with logistical advice and team support.
Cryoport has shown some improvement in shrinking its debt, and though its cash has melted, being around $7 million a year ago, there is still hope for the producer of a patented cryogenic container for transportation of biologically sensitive material. The problem is, since that time CYRX has carried continuous and large losses, so the patented technology does not seem to be working well for the bottom line.
Although the ticker is not being pumped, we may expect it to reverse its climb soon, based on previous short-term expansions. There is still too little optimism in the underlying business to prevent investors from trading only short-term, so with CYRX we advise caution. A similar story has arisen for Generex Biotechnology Corp. (OTC:GNBT). After a surge in interest the otherwise depressed stock erased its gains, turning back by 30% as holders abandoned their positions, dumping more than 40 million shares.