mCig Inc. (OTCBB:MCIG) Still Soaring
mCig Inc. (OTCBB:MCIG) rose almost 24% for two sessions in a row, both jumps caused by the news of possible marijuana legalization developments.
The last two weeks have certainly had a positive effect on MCIG‘s market standing. The company had fluctuated around $0.35 for a while, but the ascent that started on Feb. 24 has taken it far, especially during the last two trading sessions. Yesterday MCIG was traded for $0.81, and it seemed to be gathering upward momentum.
Obviously investors found the the latest news on marijuana legalization convincing enough to commit. The declaration that “money is a big motivation for Washington to act” with regard to further marijuana legalization, made by Congressman Earl Blumenauer, certainly is encouraging. A further motivation for the acquisition of MCIG stock is the fact that all MCIG investors were promised a share of VitaCig stock for each share of MCIG common stock they own, once the subsidiary becomes independent. VitaCig is to start running on its own mid-April, and with little over a month to spare there seems to be some investor interest.
This turn of events may be promising, but potential investors should really consider the matter of MCIG‘s financial integrity before jumping at its stock. The company’s latest financial report, covered the period ended Oct. 31, 2013 and contained more than a few red flags:
- cash – $13 809
- total liabilities – $81 114
- revenues – $13 180
- net loss – $19 873
MCIG‘s expected to file another 10-Q any day now, and if this report’s figures turn out to be as meager as the ones given in the last, investors may be in for a disappointment.
Another company that jumped on the news of the latest marijuana development is Terra Tech Corp. (OTCMKTS:TRTC), whose market value rose 13.1% yesterday.
