Cytodyn OTC Stock Story


USD 0.79  0.04  4.82%   

In this article, we will break down Cytodyn as a potential position in addition to your existing holdings. We will inspect why it could be a game-changer for Cytodyn investors.
Published over three weeks ago
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Are Cytodyn (OTC:CYDY) investors starting to hold back?

About 0.0% of Cytodyn shares are held by institutions such as insurance companies. Insiders ownership of Cytodyn refers to the amount of Cytodyn equity owned by Cytodyn officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Cytodyn, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Cytodyn. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Cytodyn

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Cytodyn's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Cytodyn in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cytodyn. Your research has to be compared to or analyzed against Cytodyn's peers to derive any actionable benefits. When done correctly, Cytodyn's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Cytodyn.

Watch out for price decline

Please consider monitoring Cytodyn on a daily basis if you are holding a position in it. Cytodyn is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Cytodyn stock to be traded above the $1 level to remain listed. If Cytodyn stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Cytodyn's Liquidity

Cytodyn financial leverage refers to using borrowed capital as a funding source to finance Cytodyn ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cytodyn financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cytodyn's total debt and its cash.

How does Cytodyn utilize its cash?

To perform a cash flow analysis of Cytodyn, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cytodyn is receiving and how much cash it distributes out in a given period. The Cytodyn cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Acquisition by Migliarese Antonio of 5614 shares of Cytodyn subject to Rule 16b-3

Legal trades by Cytodyn insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cytodyn insider trading alert for grant of common stock by Migliarese Antonio, CFO & Interim President, on 4th of August 2022. This event was filed by Cytodyn Inc with SEC on 2022-08-04. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Cytodyn valued reasonably by the market?

The current price rise of Cytodyn could raise concerns from investors as the firm is trading at a share price of 0.74 on very low momentum in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 90 days investing horizon is currently 9.28. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Cytodyn partners.

Cytodyn implied volatility may change after the rise

The information ratio is down to 0.21 as of today. Cytodyn is displaying above-average volatility over the selected time horizon. Investors should scrutinize Cytodyn independently to ensure intended market timing strategies are aligned with expectations about Cytodyn volatility. Cytodyn is a potential penny stock. Although Cytodyn may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Cytodyn. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Cytodyn instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Bottom Line On Cytodyn

While some firms within the biotechnology industry are still a little expensive, even after the recent corrections, Cytodyn may offer a potential longer-term growth to investors. To conclude, as of the 23rd of July 2022, we believe that at this point, Cytodyn is overvalued with below average chance of financial distress within the next 2 years. Our ongoing buy-or-sell advice on the company is Cautious Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cytodyn. Please refer to our Terms of Use for any information regarding our disclosure principles.

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