mCig Inc. (OTCBB:MCIG) Breaks The Fall
Yesterday’s session saw mCig Inc. (OTCBB:MCIG) break a pattern. The company started out low, but by the end of the session managed to jump 9.93%, braking its fall without any media attention being thrown its way.
For some time now the company’s price jumps had matched the periods in which MCIG had managed to generate publicity. This was done mainly through press releases and interviews. For instance, on Feb. 3 MCIG jumped because because of its investor presentation for the month of February 2014, which summarized the business model and performance metrics of the company.
The release itself was wordy and evasive, but managed to draw some attention to MCIG. The 18.21% rise it caused was followed by an immediate decline, which lasted two sessions.
The decline was broken by the company’s next press release, published on Feb. 6, in which MCIG announced that it had signed a contract with Jordan Young, also known as “DJ Swivel”, who is to be its new brand ambassador. The company will take the opportunity to use the Grammy-awarded DJ’s experience to reach out to other brands ambassadors and explore “other potential brand awareness opportunities”.
Although the announcement is not really informative, relevant or even entertaining, it managed to push MCIG 13.00% up the charts. The climb was immediately followed by another decline that lasted four sessions and left the company lower than it had been when the first of the February jumps began – at $0.292 per share.
Yesterday MCIG shot up again and reached $0.321, but this time the jump was not made possible by a new publication driving traders to buy aggressively. In fact it is somewhat unclear what caused the ticker to explode – the company has no new interviews, pres releases, reviews from major stock analysts, no filings and disclosure. Presently nothing even hints that MCIG deserves more attention than it got during the last few sessions, yet the company raised its value dramatically. It appears that the ticker’s jump was caused by a random fluctuation of the volatile market.
Because of the market’s present instability and the high-risk nature of pot stocks in general, due diligence and extra caution is advised by FINRA when investing in such companies.