mCig Inc. (OTCBB:MCIG) Making A Run Up

mCig Inc. (OTCBB:MCIG) jumped another 8.60% yesterday, driven up by PR induced hype and online speculation.

The company managed to close at $0.442 last Friday, when it re-published news on the results of a five year London survey on tobacco and e-cig use. The press release was vague, uninformative and distinctly optimistic, as usual. However, this time the PR’s value was further reduced by the fact that the information that the company published doesn’t relate to MCIG‘s present situation in any way. The press release clearly states that the survey was done in England, where “smoking rates are declining, quitting rates are increasing, and regular e-cigarette use among newer smokers is negligible”. Basically it announced that, overseas, the industry is going to go through a crisis, if it is not already in one.

With this in mind, MCIG CEO Paul Rosenberg’s plan to “re-introduce the merits of this innovative technology” sounds more than a little incredible, and not in the good way. Under the circumstances, the press release shouldn’t have been able to push MCIG this far up the charts, but it did.

The company’s online momentum was further increased by the barrage of MCIG stock enthusiasts’ commentary that has drowned the company’s discussion boards ever since the latest bit of PR hit the web. Currently, MCIG‘s supporters seem to be convinced that the company is on the brink of an outbreak and just needs a little nudge to “make it big”.

Technically it is true that MCIG seems to be one of the few marijuana companies on the OTC that is actually making revenues and looks like it is going in the right direction. However, its latest financial report suggests that it is still a long way away from the commercial success that would justify its 130 million dollar market cap.

Another reason for concern is the company’s tendency to promote its stock through PR. This tactic has worked miracles for the whole marijuana sector since the green rush began. However, now that the SEC has made it clear that such behavior will no longer be tolerated, MCIG would do well to rethink its strategy, or it will risk suspension.

Another pot-stock that jumped yesterday is Tranzbyte Corp. (OTCMKTS:ERBB), who made another 7.69% gain to its market value in that session.