Cyber Kiosk Solutions, Inc. f/k/a Dynasty Limousine Inc. (OTCMKTS:CYBK) – Yet Another Newly-Born Pot Stock
On February 19, 2013 Cyber Kiosk Solutions, Inc. f/k/a Dynasty Limousine Inc. (OTCMKTS:CYBK) announced that they will be presenting their own lottery and gaming software solutions in front of the Government of the Dominican Republic. In CYBK‘s own words, their products stood a very good chance at reviving the Caribbean republic’s national lottery and said that the potential revenues could amount to millions of dollars.
A few months later, on August 9, they issued a mid-year progress report in which they said that they expect to start generating residual revenues from a web-based portal during the third quarter of 2013.
The financial report for this period came out on November 19 and it showed that their projections have been a touch too optimistic. In fact, it revealed that CYBK is in a rather big financial mess. Here’s what we mean:
- current assets: -$370
- total liabilities: $350 thousand
- no revenue
- quarterly net loss: $12 thousand
Investors saw that things are not going according to plan and, somewhat predictably, the stock took a dive. CYBK dropped under the $0.01 per share mark in January, but the management team remained unperturbed.
They announced the acquisition of a stake in a company called XSKN, Inc – a private entity that produces silicone products for mobile phones, tablets, and computers. They also announced a few more deals, and the torrent of press releases, it seems, was enough to drag the ticker out of the ground.
The really big breakthrough came on February 6. A penny stock dealing in the marijuana industry called Tranzbyte Corp (OTCMKTS:ERBB) issued a press release announcing a partnership between them and CYBK. Apparently, users of ERBB‘s ZaZZZ machines will need to go through CYBK‘s software in order to complete the crucial ID and age verification process. As you probably know, the cannabis industry is scorching hot at the moment which means that the partnership with ERBB was bound to set CYBK‘s stock on fire.
And it did. February 6’s session ended with more than $450 thousand in dollar volume and around 118% in gains. Some hesitation followed, but yesterday, CYBK confirmed the agreement and the stock added another 62% to its value.
Penny Stock Mobsters (who received $4 thousand in compensation) also added to the excitement which means that the dollar volume generated yesterday stands at nearly $670 thousand.
CYBK is now officially a pot stock and people think that they’re finally going to make it. The problem is, at the current price of $0.114 per share, the market cap exceeds $6.7 million. That may not sound like much, but it is quite a lot for a company with a negative cash balance.
The fact that CYBK‘s management team have failed to deliver on their promises numerous times in the past should also warrant some extra caution and the paid pump by Penny Stock Mobsters adds yet one more layer of risk.
All in all, there are plenty of things to stop CYBK‘s progress at the moment. The temporary excitement created by their new business plan is resulting in a lot of buying pressure which could give the ticker another push up the chart. Despite this, the threat of sudden and violent corrections is very real which means that you should be extremely careful when contemplating the risks of a potential investment.
