MEC Inc (OTCMKTS:MYEC) Wipes More Of Its Value
The depressing performance of MEC Inc (OTCMKTS:MYEC)’s stock continued during yesterday’s trading. The stock actually opened the session at $0.004, above its previous close, but that turned out to be its highest point for the day. By the time of the closing bell the ticker had slashed more than 16% of its value and was standing at $0.003 per share.
The negative sentiment among investors appears to be getting even stronger – yesterday nearly 100 million of the company’s shares got traded on the market. This is a massive increase from the 34 million shares exchanged during the previous session and the monthly average of 8 million shares. If the dumping of shares continues at the same rate MYEC could soon find itself sitting on the verge of the triple-zero prices.
Doing even a cursory due diligence will reveal a plethora of red flags that could explain the extremely depressing downtrend of MYEC‘s stock. Let’s start with the truly abysmal financial state of the company at the start of the year – as of December 31, 2015, it had:
• $5,425 cash!!!
• $58 thousand total current assets
• $3 million total current liabilities
• $731 thousand total revenues
• $5.1 million net loss
Although the balance sheet is enough even on its own to show just how deep MYEC‘s financial woes really are when you compare the results on a year-over-year basis things get even scarier. The generated revenues of the company are down by around $200 thousand while the net loss has grown from $999 thousand at the end of 2014 to more than 5 million at the end of 2015.
By now you might be wondering why are we still relying on financials that are close to six months old. The explanation is quite simple – MYEC have failed to file their quarterly report for the first three months of the year. In fact, even the annual report for 2015 was actually submitted on June 6, two months after the required date. The report ate least revealed that the company is still issuing more and more common shares having 4.3 BILLION outstanding shares out of the 4.9 BILLION authorized as of May 25, 2016.
It is paramount to use caution when approaching the stock. Plan your trades carefully and never put unaffordable sums of money on the line.
