It is always nice to be right. It is even better when I am right after being heckled and threatened by fans of a junky little penny stock. I first criticized Cytocore last autumn for making inadequate disclosures of a reverse share split (I should note that the company did apparently fulfill its legal duty to report the split in its 10k, but for four months there was no way for a visitor to EDGAR or to the company’s website to ascertain the true number of shares outstanding).
I then reported on some of the vitriol I received in response to the first article (which surprised me, because that first article was rather tame in its criticisms). Most recently (back in mid-February) I criticized the management of Cytocore for painting an overly rosy picture of the company.
I am happy to report that so far this year Cytocore (OTC BB: CYOE) stock is down 60% to $0.75. Despite having touted its many distribution agreements (including in Italy, Spain, Portugal, and the USA) for its cervical cell collecting device (for use in pap smears) over the last year, the company’s most recent 10Q reports a negligible $82,000 in revenue for the first half of this year.
While I wish the company luck in its endeavors, Cytocore’s business performance and disclosures leave much to be desired. Investment in the company would be foolhardy.
Disclosure: I have no position in Cytocore. I have a disclosure policy.