Cytta corp has been trading on volatile patterns. Amid concerns of fraud in the company the stocks have been hitting on lows. The stock soared 18.18% on a traded volume of over 9 million shares. The reason behind the surge is not yet clear. The Complaint alleges that defendant First Resource signed agreements to promote Trinity Care and Cytta’s stock, for which the firm received 150,000 shares of Trinity Care stock and 200,000 shares of Cytta stock. There has been of intended stock manipulation. Cytta however has stated that the news in not true.
The federal agency accuses Stern of selling about 92,000 TrinityCare shares in some 84 transactions for approximately $100,000. The agency said he sold 32,150 Cytta shares in about 11 transactions for about $69,000. Commenting on the news Cytta has declared that “We are the first Medical Health Services Provider to coordinate and verify data transmission and medical device connectivity. Our system supports Payors & Providers efforts to provide better and faster care to their patient members.”
On the earnings front that company has not been to make profits over the past four quarters. This raises concern if the company can make substantial revenues in the current quarter. The company operates in the technology industry. Meanwhile, the company’s 10-Q is not encouraging at all. As of June, 30, 2011, total assets of CYCA were higher than its liabilities, though the net loss jumped up either. At the same time, the company had $191,531 in loans outstanding and the deficit accumulated during the development stage went over $1 million.
We maintain a sell on the counter at current levels.