CYNX - Four Reasons Why Its Share Price Will Move1. Excellent unique product,
2. Massive market (a billion + cell users)
3. Financing (non-dilutive)
3. Management shift to marketing -
For traders this is very important to know in addition to the technicalsignals when looking at where the share price is now - and where it willbe soon - in my opinion.
CelLynx looks like it is at the beginning of a transformation. Recentnews from a newly listed company, 5 Barz International, has me reallythinking that we could be seeing the refocusing of a technology companyfrom tech to marketing.
There is little doubt that the award winning technology has realpotential as a range of products for cell users (there are well over abillion and growing). Their product which can be thought of as a minicell tower amplifies the cellular signal to a full 5 bars of power evenwhere there is only a single bar. The result is less troublesome voiceproblems and takes data and web surfing to its highest level ofperformance.
The market for the small plug-and-play technology is truly massive andtheir is no competitive product with its characteristics.
Investors have been frustrated by the lack of marketing success for theproduct and one can only look at management for this problem. Solooking back at the past several months, There was a management changereplacing the start-up management with a more marketing-friendly board.
With the 8K CYNX outlined the financing arrangements which saw that acompany named “Dollardex” was going to finance the initial growth stagewith $2.5 million in line of credit guarantees. And then in January,“Dollardex” did an RTO and became a listed company renaming itself“5Barz International Inc.” stock symbol BARZ on the OTC market.
To repeat the quote from the Jan 5, 2011 news release:
International, Inc. (5Barz) Acquires the Master Global Marketing andDistribution Rights for the Award Winning 5Barz "Cellular NetworkExtender" Technology. In it they said:
“...president Mr. Daniel Bland is pleased to announce the acquisition ofthe master global marketing and distribution rights for 5Barz products,as well as a 50% interest in the intellectual property developed byCelLynx Group Inc. The 5Barz technology is the first one-step plug andplay cellular network extender in the industry. The 5Barz product linecombines high-performance hardware with extensive software development,integrating complex algorithms and intuitive interfaces resulting in aconsumer friendly product which amplifies a cell signal as soon as youturn on the device.
The consideration paid for the assignment of the assets is comprised of anote payable in the amount of $370,000 USD to Dollardex Group Corp. Inaddition, 5Barz will issue 15,600,000 shares of the common stock of5Barz International, Inc. to Dollardex Group Corp., representing 17.8%of the issued and outstanding common stock of the Company. Theagreements provide for the acquisition of the intellectual property for$1.5 million USD payable in a series of payments to be completed byFebruary 28, 2011. In addition the Company is making a revolving line ofcredit in the amount of $2.5 million USD available to CelLynx to befully funded if required by March 31, 2011, which is secured by thebalance of the intellectual property.
About 5Barz International, Inc.
5Barz International, Inc. has entered into an exclusive, international,marketing and distribution agreement with CelLynx Group Inc, a winner ofthe International CES Innovations 2010 Design and Engineering Awardsfor its new, patent pending 5Barz cellular network extenders. 5BarzInternational, Inc. acquired a 50% interest in that technology andaspires to service an international marketplace of some 4.8 billionmobile phone users. Built on breakthrough technology, 5Barz technologydelivers faster data service and clearer phone calls in zones with eventhe weakest signals. Unlike competing technologies, the patent-pending5Barz™ technology does not require any installation, outside antennas orcables. It capitalizes on widespread customer dissatisfaction withindoor and vehicular cell phone coverage, and on the phenomenalworldwide growth of voice, data and video applications on cellularnetworks. 5Barz International, Inc. will focus on the sales andmarketing of the 5Barz products incorporating this cellular networkextender technology globally once the Company has completed theacquisition of those assets referred to herein.”[/INDENT]
Now what can this mean? CYNX is presently trading at 0.035 havingfallen from highs of 0.25 in December 2009. BARZ is trading at 1.30.The commitment to the marketing of CelLynx technology is gettingstronger not weaker. With a unique product like this solving the realproblem of signal strength in a market of the size of cell users (over abillion) I see great things coming for this company and for the CYNXshare price.
For me this is a huge buy at this point.