mCig, Inc. (OTCBB:MCIG) Turning The Tide

mCig, Inc. (OTCBB:MCIG) has had a bad run since last Wednesday. The four sessions in the red after its last spike cost it nearly 25% of its market value, leaving it bruised and beaten at $0.599. That all changed yesterday, when the ticker shot up 18.53% on a $6.6 million volume.

The road for MCIG‘s recovery was paved by the April 7 report the CNBC did on the company’s product. Optimistic and favorable, the news coverage did a lot to decrease the company’s downward momentum. However, this particular piece of news wasn’t what stopped MCIG‘s descent to the bottom of the charts.

MCIG was launched up by an announcement that hit the web before yesterday’s trading session began. In a press release, the company declared that, during the previous work day, it had beaten its record for daily revenues, selling products worth a total of $28,400.

Although the number doesn’t seem all that impressive, this is no mean feat for the standards of most penny stock companies currently on the marijuana market. For comparison – in its latest 10-Q MCIG declared that it had $85 thousand revenues during the three months ended Jan 24, 2014. Once this is taken into account, it becomes obvious why the news that the company has made more than a third of its quarterly revenues in a single day of sales can be seen as a cause for optimism among MCIG supporters. If the announcement turns out to be truthful and accurate, and not just another publicity stunt aimed at pushing the ticker upwards, it may prove to be a harbinger of MCIG‘s change for the better.

MCIG isn’t in the habit of delaying its filings, no matter how unimpressive they are, which seems to be a common practice among marijuana stocks these days. This has also been pointed out as a reason for investor trust in the company. Many of the more “prominent” companies on the current marijuana market, such as Creative Edge Nutrition Inc. (OTCMKTS:FITX) and HEMP, INC. (OTCMKTS:HEMP) can’t make that claim.

Still, investors should consider the fact that MCIG currently has a market cap of $191.8 million, while its current assets two months ago amounted to a number approximately 2100 times lower than that. That being the case, it’s no wonder that MCIG has been called “overhyped” and “overvalued”, just like the majority of the other pot-stocks. Potential investors should take these facts into account and act accordingly.