Cyan Inc (NYSE:CYNI) ended the last trading session 26.58% higher with a huge surge of volume that reached 15 million against the meager daily average of 800,000 only. The board of directors of the company will be invested against for potential legal claims regarding possible breaches of fiduciary duties and violations of law related to the deal of the company to be acquired by Ciena Corporation (NYSE:CIEN) for $400 million. Under the terms of the agreement, the exchange ratio of shares of the two companies reflects approximately $4.75 per share of Cyan common stock for the shareholders of Cyan. That drove the stock price to $4.75 during the last trading session.
Cyan Inc (NYSE:CYNI) was listed exactly two years back, in May 2013. Within 2 months of listing, it hit the high of $15.05, about 50% return in just a few days but later that high turned out to be the highest point of the stock’s life. The next few months saw a steady decline, interrupted by sideways phases acting as pauses for the bears. Since November 2013, the bearish momentum slowed down a lot and a kind of base building process began.
The last 2-3 months of 2014 saw the stock breaking below the multi-month support around $3 levels to hit a new lifetime low at $2.02 but due to some bottom fishing and stock picking by a few aggressive investors, the stock saw a gradual recovery of the last phase of the decline. The rally from the $2 levels to the high of $4.40 reflected an appreciation of more than 100% in just about 5 months. Lately a bout of profit booking affected the stock but the announcement yesterday took it to test the long term supply area in the band of $4.75-$5.40. Any more upside for the stock, despite this amazing jump, looks difficult right now.
