Medical International Technology Inc (OTCMKTS:MDLH) Pushed Up by a Free Pump
Stock Mister first mentioned Medical International Technology Inc (OTCMKTS:MDLH) on December 17 when a couple of no-compensation emails hit our inbox. Back then, the ticker was thinly traded and the price hovered around $0.006 per share.
This is normally the recipe for some explosive chart movement and in that aspect, MDLH didn’t disappoint. In just six and a half hours the ticker managed to jump by as much as 575% and finished the session at just over $0.04. The dollar volume, however, stood at less than $50 thousand which means that very few people paid attention. Soon after, interest dried off completely and the stock remained virtually stationary over the next month.
Yesterday, Stock Mister decided to put MDLH through the same treatment. They got a helping hand from Liquid Tycoon and their affiliated newsletters and we should note that this time the results were absolutely astonishing. MDLH opened the day at $0.048 and skyrocketed just minutes after the first emails hit investors’ inboxes. At one point, it reached a mind-bending height of $0.173, but then slumped back to more manageable levels. It finished the day at $0.0961with around $443 thousand in dollar volume.
The enthusiasm created by the free pump was strong enough to provide investors with around 113% in potential profits, but unfortunately, there were also the people who bought in at the top and we can’t imagine that they’re too happy about the performance. Still, the question on everyone’s mind is: “Where is the stock heading next?“.
Unlike many OTC-listed enterprises, MDLH have a commercial product. They have developed a needle-free jet drug delivery system and although it has yet to be approved by the U.S. FDA, they have the right to sell it in other countries the world over. As the latest 10-K shows us, however, not everything is going quite according to plan. Here’s a summary of the annual results for the period ended September 30, 2013:
- cash: $1,020
- current assets: $394 thousand
- current liabilities: $236 thousand
- yearly revenues: $846 thousand
- twelve-month operating income: $69 thousand
They did manage to register a $982 thousand net income, but this is due to a one-time charge coming from a legal dispute on a contract. More worryingly, they logged a 17% decline in revenues year-over-year which puts some questions around the future success.
All in all, MDLH might be able to pull through, especially if they are successful with the FDA trials. With no news coming out of the company headquarters, however, we can only wait and see what will happen next.
While we’re at it, we might as well take one more peak at the annual report. In it we read that during the fiscal year ended September 30, 2012, around 4.5 million common shares (valued at $0.001 per share) were issued in exchange for services. Did these shares hit the open market yesterday? Were they the reason for the massive intraday plunge from around $0.17 to $0.09?
We’ll probably never know, but we still reckon that keeping them in mind might not be a bad call in case you decide to put your money in MDLH.
Fastfunds Financial Corporation (OTCMKTS:FFFC) also had an explosive start of the week. It managed to double its value in just six and a half hours, fueled by the marijuana hype which is, apparently, still going strong. Latteno Food Corp (OTCMKTS:LATF), another pot stock, also registered 100%+ gains. It finished the day at $0.0025 while the dollar volume stood at well over $1.7 million.
