After scraping the bottom of the barrel last month, CyberCash's (CYCH) stock has powered forward to gain about 80 percent over the last several weeks on news that it is seeking additional funding and partnerships.
The electronic bill payment company's stock gained more than 14 percent in early trading today to climb to 20-1/2, before ending the day at 20-1/4, up 2-1/2 over yesterday. Today's movement builds on its performance since June, when it closed the month at 11-1/4. The gain comes to 9 points, or 80 percent.
Last week, the company announced a 50-fold jump in revenue for the quarter ending June 30 to $812,361, while net losses grew slightly to $6.3 million from $6.2 million a year earlier.
Those losses could shrink if the company can nail down additional funding. And it is those expectations driving the stock price up, said Gary Craft, an analyst at Robertson Stephens. He added that last month, the stock was very undervalued, but that gap in valuation has been closed. "The valuation should continue to expand as the total pie is enlarged," he said.
Craft, however, cautioned that it is difficult to determine proper valuation of a company in a market that is growing so rapidly.
Still, the two big players in electronic bill payments, CheckFree and CyberCash, are set to be a part of a billion-dollar market. Craft said that CyberCash could generate $30 million to $35 million in revenue next year.
More important, the company hopes to team with more partners overseas. CyberCash is likely to hook up with banks for electronic commerce deals.
"In Germany, Switzerland, or Japan, a relationship with a bank can give much influence over customer habits," Craft said.