Cyanotech’s stock
doubles, reaches $1 level
Cyanotech Corp.'s stock price has more than doubled on heavy volume since the company released its fiscal second-quarter earnings last week.
The Kona company, which makes nutritional and feed products from microalgae, also has moved into the top spot in the Honolulu Star-Bulletin stock index with a 150 percent gain. On Oct. 30, the company reported a loss for the quarter ended Sept. 30 of $10,000, compared with a loss of $540,000 a year ago. The company's second-quarter revenues rose 41 percent to $2.8 million from $2 million a year ago.
During the second quarter, Cyanotech continued to see strong demand for its NatuRose products in Japan and experienced increased sales of its BioAstin products in the United States and Europe, said Gerald Cysewski, chairman, president and chief executive officer.
NatuRose gives fish farmers the ability to grow salmon and other fish using the natural pinkish substance rather than using synthetic pigmentation. BioAstin contains natural astaxanthin, an antioxidant produced by microalgae.
"There has been considerable strength in stock price and volume since earnings came out, but there has been no subsequent news driving that, so perhaps, some additional attention is being paid to the company," said Laura Guerrant, a principal with Guerrant Associates, a firm that represents Cyanotech's investor relations.
The day after the company's earnings were released, trading volume rose to 480,776 from 20,200 the previous day, about nine times the average daily volume for the last six months.
Cyanotech's stock price has risen from 48 cents before the earnings announcement to $1 at yesterday's close. It was the first time since May 3, 2002 that the company's stock closed at that level.
Cyanotech received a delisting notice from the Nasdaq SmallCap Market in September for failing to comply with the $1 minimum bid price listing requirement. The company has appealed the delisting, and is awaiting a decision from the Nasdaq Listing Qualifications Panel, Guerrant said.
If the company loses its appeal, its stock would trade on the Over-the-Counter Bulletin Board.
