(NASDAQ:CYAN) Pending Breakout and or Acquisition? The Little Engine That Could
(NASDAQ:CYAN) Pending Breakout and or Acquisition? The Little Engine That Could.
Cyanotech has been around for decades but has never been able to shake its perception as a penny stock or off off-broadway neutraceutical/pharmaceutical, in addition to its February 2010 troubling announcement of the abrupt and unexplained resignation of its President and CEO "...effective February 27, 2010, the Board of Directors elected to remove Andrew H. Jacobson from his responsibilities as President and Chief Executive Officer of the Company. Effective February 27, 2010, the Board of Directors appointed David I. Rosenthal, age 55, to serve as the Company's Interim President and Chief Executive Officer until the Board has selected and employed an individual to serve as the Company's new President and Chief Executive Officer; a search has been initiated..." (2.)
Cyanotech announced on November 8th, 2010 the hiring of Brent Bailey, formerly "...President and Chief Operating Officer of Pharmavite LLC, a $500-million subsidiary of Otsuka Pharmaceutical Company, he and his team drove the Nature Made brand to the #1 position in mass market nutritional supplements and built Pharmavite into an industry leader...".
Given CYANs potential and current dominance of Astaxanthin production, track record, patents, recent back to back national exposure on Dr. Oz in re: Astaxanthin and Spirulina potential, and Brent Bailey's recent nomination as CEO, CYAN should represent a possibly superior undervalued asset play. CYAN should simply be at a tipping point of an imminent acquisition by a major pharma/neutraceutical or Private Equity firm, and breakout due to its modest valuation and demand esp of its Astaxanthin, of which, CYAN private labels for many companies including Vitamin Shoppe (3.) (NYSE:VSI)...significantly all backed by recent scientific endorsements of its astaxanthin and spirulina. It all comes down to how Brent Bailey negotiates this tipping point $taring him in the face in my opinion.
Key (recent) Events
2/16/2011 UC Davis Research Study Indicates that Cyanotech’s Spirulina Pacifica® May Counter Anemia and Declining Immune Function in Persons Over Age 50. Source: Cellular & Molecular Immunology, January 31, 2011.
12/1/2010 Natural Astaxanthin Praised by Dr. Joseph Mercola for Broad Health Benefits.
Fiscal year ended March 31, 2011* Note: As of this writing Cyanotech has not announced Annual Shareholders Meeting, Q4/FY 2011 Earnings Announcement, DEF 14/A...
SEC Form 10-Q for the period ending December 31, 2010
Stock Price: $3.59 (as of April 15, 2011 market close)
Market Cap $ 19.35M *
Current Ratio: 4.02*
Shares Outstanding: 5.39M*
Total Cash $729,000.00 (mrq)*
AstaFX AstaREAL (Purity Products)
AstaFactor (NASDQ:MRPI) is effectively insolvent yet owns AstaFactor (Mera Pharmaceuticals)
1. UC Davis Research Study Indicates that Cyanotech’s Spirulina Pacifica® May Counter Anemia and Declining Immune Function in Persons Over Age 50. Source: Cellular & Molecular Immunology, January 31, 2011.
2. globalnatural MEDICINE
"...Cyanotech Corporation reports that their product, Bioastin, has been shown in double blind, placebo-controlled studies to be beneficial in rheumatoid arthritis (RA) and carpal tunnel syndrome (CTS). The clinical trials were conducted by Dr. Gene Spiller at the Health Research Studies Center in Los Altos, California, and were double-blinded, placebo-controlled studies. The RA clinical trial involved 21 patients with a group of 14 randomized patients consuming three BioAstin soft gel capsules daily with each meal for eight weeks and seven randomized patients consuming a placebo. The CTS clinical trial involved 20 patients with a group of 13 randomized patients consuming three BioAstin soft gel capsules daily with each meal for eight weeks and seven randomized patients consuming a placebo. In the RA study, subjects completed a health assessment questionnaire at the beginning of the study and after four and eight weeks. In the CTS study, subjects completed a Symptom Severity Survey at the same time frames
* Yahoo! Finance Key Statistics for (NASDAQ:CYAN).
1. (May 19, 2008) Cyanotech names Andrew Jacobson president, CEO
2. (February 27, 2010) Implu.com
3. Vitamin Shoppe's Astaxanthin (Supplement Facts), Cyanotech Bioastin.