Based on the way this micro cap stock has been moving since mid-January, today’s move doesn’t really come as a surprise. CytoCore (CYOE) is up 8.7% today, and up 79% for the past month, thanks to the launch of its SoftPAP™ cell collector.

The big move for the small stock started on January 7th…the first day the device hit the shelves in Europe. After a very big month for investors, another log was put on the fire today - the FDA approved the device for use in the United States.

In far too may cases where FDA-approval is finally granted, the actual event is a bit of a let-down (”buy the rumor, sell the news”). In CytoCore’s case, however, we feel this chart may have quite a bit more upside before stalling. It was as high as $7.45 less than a year ago, before the SoftPAP™ was on shelves. At the current price of $3.84, it could gain another 94% before even rivaling the previous all-time high from last February.

If you’re wondering whether or not there’s really any potential in the SoftPAP device, know this - the Chairman of the Board as well as the CEO both just invested a combined total of $600K in the company. That’s not an end-all, be-all sign (and may have been more of a publicity effort), but it’s not like it’s chump change. In fact, the two own about 10% of the company, investing a great deal of their own funds as they steered the company through its turn-around.

And, the turn-around seems to have worked. They’ve already got $10 million in guaranteed SoftPAP orders for 2008/2009.

As for the company as a whole, it’s not clear to what degree the SoftPAP device will shore up hefty sales decreases…and we do mean hefty. In fiscal 2004, they produced $243K in revenue. In fiscal 2006, they did $94K in sales. Neither are great compared to the company’s $132 million market cap, but the strong start to SoftPAP sales is a glimmer of hope.

Though not yet what we’d consider ‘investment caliber’, CytoCore may be trade-worthy while the hype is still echoing. The ceiling around the $4.00 is under attack. It’s still intact, but should it break, we could see CYOE run. On the flipside, if it fails, we may see a very short-term shorting opportunity. Even then, we’d still be apt to buy on the dip once support was found.

Start receiving FREE e-research on select small and micro cap stocks. Get in-depth research reports, comprehensive coverage, exclusive market commentary and more, just by becoming a MCP subscriber today! Look for the submission form at the top of the right-hand column.