CYREN Story

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CYRN -- USA Stock  

USD 0.94  0.05  5.05%

CYREN is scheduled to announce its earnings tomorrow. CYREN Working Capital is quite stable at the moment as compared to the past year. The company's current value of Working Capital is estimated at 610,658. Book Value per Share is expected to rise to 0.51 this year, although the value of Average Assets will most likely fall to about 60.5 M. While some millenniums are indifferent towards technology space, it makes sense to outline CYREN as a unique investment alternative.
Published over a week ago
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What is December outlook for CYREN (NASDAQ:CYRN)?
The company currently holds 31.3 M in liabilities with Debt to Equity (D/E) ratio of 1.68, which is about average as compared to similar companies. CYREN has a current ratio of 1.15, suggesting that it is in a questionable position to pay out its financial obligations when due. About 67.0% of the company shares are held by institutions such as insurance companies. The book value of CYREN was currently reported as 0.31. CYREN recorded a loss per share of 0.28. The entity had not issued any dividends in recent years. The firm had 1:3 split on the 2nd of January 2008.
CYREN financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of CYREN, including all of CYREN's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of CYREN assets, the company is considered highly leveraged. Understanding the composition and structure of overall CYREN debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring CYREN on a daily bases if you are holding a position in it. CYREN is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as CYREN stock to be traded above the $1 level to remain listed. If CYREN 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.

Understanding CYREN Total Debt

CYREN liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. CYREN has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on CYREN balance sheet include debt obligations and money owed to different CYREN vendors, workers, and loan providers. Below is the chart of CYREN main long-term debt accounts currently reported on its balance sheet.
You can use CYREN financial leverage analysis tool to get a better grip on understanding its financial position

How important is CYREN's Liquidity

CYREN financial leverage refers to using borrowed capital as a funding source to finance CYREN ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CYREN 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 CYREN's total debt and its cash.

CYREN exotic insider transaction detected

Legal trades by CYREN 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:
CYREN insider trading alert for general transaction of ordinary shares by Lior Kohavi, Chief Technology Officer, on 12th of August 2020. This event was filed by Cyren Ltd with SEC on 2019-02-19. 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.

Breaking it down a bit more

The entity reported the previous year's revenue of 37.85 M. Net Loss for the year was (16.23 M) with profit before overhead, payroll, taxes, and interest of 23.06 M.

Liabilities Breakdown

14.8 M
Current Liabilities
22.9 M
Long-Term Liabilities
Total Liabilities30.01 Million
Current Liabilities14.78 Million
Long-Term Liabilities22.88 Million
Tax Liabilities1.11 Million

Some CYREN technical indicators suggest recoup

The jensen alpha is down to -0.34 as of today. CYREN exhibits very low volatility with skewness of 0.13 and kurtosis of 0.36. However, we advise investors to further study CYREN technical indicators to make sure all market info is available and is reliable. CYREN is a potential penny stock. Although CYREN may be in fact a good instrument to invest, many penny 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 CYREN. 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 this equity 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 Final Perspective on CYREN

Whereas many of the other players in the software?infrastructure industry are either recovering or due for a correction, CYREN may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 15th of November 2020, we believe that at this point, CYREN is dangerous with very high chance of financial distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our final 30 days 'Buy-Sell' recommendation on the company is Cautious Hold.

About Contributor

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 Gabriel Shpitalnik do not own shares of CYREN. Please refer to our Terms of Use for any information regarding our disclosure principles.

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