CyberDefender Corporation
(NasdaqGM: CYDE )
Get out your balls of steel. On August 23rd, CYDE hit a new 52 week LOW of 43 cents per share. The EPS is in the negative at the point with a non-existent P/E. Shares are at 53 cents as of this afternoon. Afterhours trading is pegging it at $2.50 per share (dream on). After flurries of stock trading activities in June and July with the daily volume tripling and quadrupling the average volume, the traders have had enough. Everyone who is holding onto it seems determined to hold on tight.
Management is due to release their quarterly earnings report on October 25th. Although their net income in the quarterly reports has been improving as an overall trend, the company continues to bleed money. However they appear on track not to have as bad as a year as they had in 2010, when they lost $31 million dollars. Gross sales continue to double year after year, with overall revenues in the $10-$15 million range. This could conceivably double this year based on the numbers the company releases if they are accurate.
One broker places the price target of their stock at $8 per share in one year. In my opinion this is overoptimistic, and I'd like a little bit of whatever that broker was smoking when he came up with that number.
Of course, Gary Guseinov, the co-founder and CEO, also the number one stock owner, jumped ship on August 1st. He was replaced by Greg Thomas. Most investors seem optimistic regarding the change in leadership.
Some intra-office gossip about CYDE from the Yahoo Finance Forums - "I can tell you as a Tech working here at Cyberdefender , The previous upper management really did not do a good job running this place. 1:The software is not good at all Early Detection Center and the Registry cleaner will harm the PC more then anything. It was poorly created and not tested. The inside rumor is the New CEO and his 2nd in command are trying to secure funding to keep this operation afloat 50/50 chance it can happen. The biggest issue i can see if the First CEO decided to create a call center in the center of downtown Los Angeles instead of setting up a cost effective spot in an industrial area. Aside from that the internal software used to support our customers does not work well , we are constantly miss handling customer cases due to mistakes made by under trained staff and they force the technicians to spend there time doing other jobs such as answering the phones and sales instead of the job of focusing on working on a customers PC. In short the only way this company survives is that they kill the support center in LA and outsource the techs which is a sad sad ending.
I don't trade stocks in any way shape or form we at work have been following our stocks to see when would be the time to dust off our resumes and the feeling here is now. Most of our CO's are gone now our best VP's are smiting resignations which is sad to see. I myself would like to ride this ship till it sinks , since the company is 24/7 i have not had a vacation or a weekend or even a Christmas /Thanksgiving off i welcome unemployment for a month or 2 before i get my next job.But if anyone has any questions ill be happy to answer , if anyone can tell me why is it people still buy this stock ? i am baffled just google Cyberdefender and the first page is what most of our customers feel and now our best techs are leaving do to poor treatment so so sad. "
Class Action Lawsuits Settled May 6th 2011 document http://www.cyberdefendersettlement.com/Documents/CDT0001/CDT_Stipulation.pdf
"Plaintiffs brought a class action lawsuit against CyberDefender Corporation ("CyberDefender") wherein Plaintiffs alleged that the design, marketing and sale of CyberDefender's computer software products and services was improper. Plaintiffs also alleged that CyberDefender has failed to abide by its refund policies. CyberDefender denied and continues to deny any wrongdoing. To resolve this matter without the expense and uncertainties of litigation, Plaintiffs and CyberDefender have entered into the Settlement. By agreeing to the Settlement, CyberDefender is not admitting that it is liable to Class Members, or anyone else, or that it violated any law or regulation. " http://www.cyberdefendersettlement.com/CaseInfo.aspx?pas=CyberDefenderSettlement
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