Will Marilynjean Interactive Inc (OTCMKTS:MJMI) Move Higher?
Last Thursday the stock of Marilynjean Interactive Inc (OTCMKTS:MJMI) closed at $1.08 per share for a gain of nearly 6%. Although on Friday investors were far more interested in the company with the daily volume reaching 153 thousand shares compared to the 33 thousand from the previous day the increased activity did not translate into another positive close. In fact, MJMI finished the trading day completely flat at $1.08.
Early in the morning today the company issued a new PR but will it be enough to push them further up the chart? Well, despite being rather lengthy the press release contained almost no substantial information. It revealed that MJMI have entered into advanced discussions with a provider of Bitcoin-based remittance services. The name of this entity wasn’t disclosed and the only provided details being that it has a well-established brand and multiple Bitcoin ATMs in the Philippines.
MJMI may be trying to move forward with their plans but investors should be extremely careful. Initially the company planned to acquire, explore and develop prospective resource properties but after a couple of years they decided that this wasn’t working. So, MJMI moved on and started selling baby clothes, accessories and toys through an e-commerce platform. The outcome remained the same though and after another change in plans they are now in the Bitcoin business. The problem is that currently MJMI‘s financial resources are almost non-existent. At the end of June the company had:
• $5,571 cash
• $7,833 total current assets
• $198 thousand total liabilities
• ZERO revenues
• $1676 net income
The management has taken some positive steps by cancelling 106 million convertible shares in September followed by the cancellation of 21 million free trading shares at the start of October. As a result the company’s fully diluted share count was reduced by over 42%. Keep in mind one thing though – the PR didn’t reveal if the 21 million shares were part of the 42,385,500 units priced at $0.01 each that were issued back in July 2012. The units consisted of 1 common share and a couple of warrants but by now the warrants have expired without being exercised. The shares on the other hand could still allow their owners to reap millions in gains if they unleash them on the open market at the current price of the stock.
The red flags surrounding MJMI are extremely serious not to mention that even with the recently cancelled shares the market cap, which at the moment stands at more than $186 million, is completely disconnected from the underlying fundamentals of the company.
