Blue Calypso, Inc. (OTCBB:BCYP) Retreats After News-Driven Surge

9BCYP_chart.pngFriday saw Blue Calypso, Inc. (OTCMKTS:BCYP) fumble and close 6.6% down, still shuffling heavy volume of over 2 million shares. It seems the order of the last few sessions for BCYP is volatility, as excited jumps have been followed by immediate dips.

BCYP is a company that offers online advertising solutions driven by friend recommendations. BCYP chimed in with another press release last Thursday, informing the public that the company reached a settlement in a copyright infringement dispute with MyLikes. The dispute culminated in a licensing agreement under which MyLikes agreed to pay BCYP ‘the equivalent’ of a 3.5% royalty for the use of the patent in question. How much as an absolute number those 3.5% are is not clear.

While this is obviously good news for BCYP, this is just one of the several cases where the company has alleged that other businesses infringe on its patents. Cases have been filed against Groupon and Yelp, and with those BCYP is bound to have a much harder time. The claim hearings are scheduled for November this year, so the outcome is not coming any time soon.

Financially, BCYP are not in the best of states, at least as per their latest available report for Q1 of this year:

  • $64 thousand in cash
  • $515 thousand in current liabilities
  • $10 thousand in Q1 revenues
  • $970 thousand in Q1 net loss

With the next quarterly’s due date drawing near, any improvement in the bottom line of the company will be a refreshing sight. With BCYP dishing out press releases concerned mostly with patents and speaking very little about operations, a dramatic change is not highly likely. The company was also swarmed by stock pumpers in mid-June. Traders are advised to do their own due diligence and be extra careful around OTC stocks.

67NTEK_chart.pngOther companies that were in Friday’s spotlight include Petron Energy II, Inc. (OTCBB:PEII) who went from $0.01 to $0.10 in just two sessions, aided along by several pumpers. NanoTech Entertainment, Inc. (OTCMKTS:NTEK) also reversed their red streak and closed 18% up, nearly making up for half the losses incurred over the previous three sessions.

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