mCig, Inc. (OTCBB:MCIG) Takes a Step Back
Since mCig, Inc. (OTCBB:MCIG) rose at the end of February, the stock has been on a roller coaster ride. It’s still way above the levels occupied before the surge, but for how long? Yesterday MCIG registered another red session and continued the cycle of rising, then sliding. Still, it lost only 7% – by no means a large drop – closing at $0.565, with a dollar volume of $1.15 million.
Yet this exact same thing has happened no less than four times over the last thirty days, which raises questions around MCIG‘s direction, as the ticker has gone a little bit lower each time. At its highest points on the charts recently, April 8 and 9, MCIG‘s share price was primarily affected by three factors.
The first of those comprised of two press releases, claiming that they broke on April 7, then re-broke on April 8, their 24-hour sales record, first generating $28,400, then $45,800. The latter figure is, reportedly, “an increase of 1,200% over the previous quarter sales per inventory day.” This is an impressive achievement especially considering that the revenue came from mCig.org only. Whether the company can sustain the growth is a different matter though.
The second thing was an announcement on April 9 that the company had obtained a CE Mark (a regulatory clearance) for its mCig 2.0 device. This will now allow MCIG to distribute and market the device in the European Union, but investors should be aware that such a prospect might be a long ways off.
The other significant thing that affected the performance was a free pump email from Pennybusters. Unfortunately, as it almost always happens after such an email, the stock rises and then slips.
All this, despite the fact that there’s plenty of positive news and MCIG has a financial report that, unlike many other OTC companies, is unburdened by debts and net losses:
- Cash – $37 thousand
- Total Current assets – $91 thousand
- Total current liabilities – $22 thousand
- Quarterly revenues – $85 thousand
- Quarterly net income – $10 thousand
Keep in mind that those financials are for the period ended January 31, 2014, so they may not represent MCIG‘s current situation.
The climb experienced during the five days prior to yesterday’s slip seems to be largely due to VitaCig, MCIG‘s self-described flagship product that launched on April 15. Yet, we remind you that at the beginning of April MCIG announced a new product – LiqCig, a strange project that involves mobile vaporization devices for “recreational alcoholic consumption”. Surprisingly, there have been no updates on the product since then.With no immediately negative news in sight, yesterday’s small drop may simply be a continuation of what has befallen MCIG for quite some time now. Investors should note this, because if the cycle continues, the company may be in for a red streak in the next few days.
