mCig, Inc. (OTCBB:MCIG) On The Descent
mCig, Inc. (OTCBB:MCIG) ended 2013 badly. It suffered a massive crash in the year’s very end – the company lost 41% of its market value in just one session. The new year has seen it recover in record time – 6 sessions after the crash the ticker was already soaring again. Nine sessions into the new trading year, it’s falling once more, and fast.
The company made significant progress to make up for its sudden holiday drop around Jan. 9, when it surged by 30%, happily returning to prices of about 18 cents per share. The two sessions that followed took the ticker even further up. It finally stopped at $0.234 on Jan. 13, and has been on the descent since.
Although mCig just recently entered the market for electronic cigarettes, it has managed to arouse buyers’ interest. The company is certainly not the only one on the market offering vaporizers, but their product seems to be unique in the respect that, allegedly, it can be used with not just tobacco, but a myriad of herbs.
It should be immediately obvious how such an invention could draw the attention of the many pot-stock enthusiasts, especially if you consider the volatility of the marijuana stock market and its tendency to swallow companies that are even remotely weed-related. Needless to say, investors have jumped at the chance to buy MCIG stock ever since the craze began. So why are they dropping now?
Part of the reason may be that the other marijuana-related companies have also had a difficult couple of sessions. MCIG didn’t suffer the mass crash, perhaps due to the fact that just before things started going sour, the company managed to bring a new and promising product on the market – the mCig 2.0. Thus the seizure that took down Cannabis Science Inc. (OTCMKTS:CBIS), Creative Edge Nutrition Inc. (OTCMKTS:FITX) and Tranzbyte Corp. (OTCMKTS:ERBB) at the end of last week seemed to leave them unaffected. However it is safe to assume that the market current that is presently dragging all pot stocks down is the same force that is trying to sink MCIG as well.
The financial report they filed on Dec. 16, that covered the quarterly period ended Oct. 31, 2013 certainly isn’t keeping the company afloat either.
- Cash and current assets $13.8 thousand
- Total current liabilities $81 thousand
- Quarterly revenues $13 thousand
- Quarterly net loss $19.8 thousand
Unimpressive figures, to say the least. And now that MCIG‘s used its ace in the hole, the company’s market standing is more infirm than ever.
Investors are, once more, implored to do their due diligence before committing to high risk stocks.
