Good Afternoon!
I reserve my WEEKEND ALERTS for plays that hit my screen with so much force that we can’t wait another minute to start figuring the angles.
Cybergy Holdings Inc. (CYBG) not only fits that description but raises the bar higher than we’ve seen in a long, long time! We’re talking SKY high!
The story here starts with a bull run that just added up to 2 digits on Friday, but even so, the chart is still only nudging above oversold:
Looks like CYBG started tickling a nice floor around 0.35 a few weeks ago and Friday’s reach for the sky could be the start of a new trend.
The MACD is already flashing a potential turning point. The bulls have a crossover and momentum on their side even as we speak.
And any trader can see that even if this is a “reversion to mean” bounce, CYBG has vast room to move before it hits its head.
The recent trading top is way up at 0.51. Long-term trend lines . . . the statistical “means” a trade tends to revert to . . . are 3 digits away!
I’m not saying where CYBG will go on its next great leap or even if it will be on Monday, but the rewards for winners can be VAST.
Meanwhile CYBG keeps batting WELL above either its weight class or its market cap in some of the hottest high-tech niches around!
CYBG has already rolled up start-ups that deal with “smart grid” power technology, accounting systems and especially cyber-security.
The latest acquisition can prevent data breaches like the one that just exposed 4M government workers to foreign computer hackers.
A lot of the top talent coming to CYBG from that company have deep connections in the military, which obviously needs to keep the files SAFE.
Most of the customers already on the CYBG books are one branch of the government or another, so it’s a nice way to deepen that existing footprint.
Either way, the money is rolling in! CYBG booked 6M in revenue last quarter alone, which is a STUNNER for a company that weighs 7M soaking wet.
With another 85M from the Department of Energy on the table and
500M to share from the Department of Health, the pipeline looks full.
The only question mark I have is when Wall Street will find out how all that fundamental math is adding up behind the ultra-low CYBG PPS.
Management has been working hard to boost shareholder awareness. Here’s the CEO going off on how STRONG the balance sheet really is!
If I read that right, CYBG earned 6M after costs last year and has ONLY 3M in “real” liabilities once you factor out accounting fictions.
With those numbers to play with, I wonder if the sellers got a little . . . no a LOT ahead of themselves here in the last few weeks.
So IF the chart is showing that traders are digging below the headlines on CYBG to grab the massive potential, I want you AHEAD of the curve.
The upside here is so huge that Friday’s 6pct surge barely disturbed the water. CYBG still looks oversold. Maybe the best is yet to come?
See you tomorrow morning with a reminder and a few added notes.
Sincerely,
Michael Reef
yourstockguy@gmail.com
