mCig Inc (OTCMKTS:MCIG) Surges On PR

[[tagnumber 0]][[tagnumber 1]]Looking at the chart performance of mCig Inc (OTCMKTS:MCIG) doesn’t bring a lot of happiness to the shareholders of the company. The ticker has been sliding down for over a year and has lost quite a lot of altitude compared to where it was sitting in the beginning of 2014.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This doesn’t surprise anyone that much, considering how other stocks of companies operating in the medical and recreational cannabis sector are faring. Furthermore, there is the matter of the numbers that were contained in their latest quarterly report. It covered the period ended January 31, 2015 and we found these numbers in its balance sheet.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 9]] [[tagnumber 10]]cash: $200 thousand[[tagnumber 11]] [[tagnumber 10]]current assets: $771 thousand[[tagnumber 11]] [[tagnumber 10]]total liabilities: $13,783[[tagnumber 11]] [[tagnumber 10]]quarterly revenues: $88 thousand[[tagnumber 11]] [[tagnumber 10]]quarterly net loss: $743 thousand[[tagnumber 11]] [[tagnumber 20]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]While some might argue that [[tagnumber 24]]MCIG [[tagnumber 25]]is actually generating revenues, unlike many other OTC entities, you should note that while the company is putting new products out on the market its revenues have shrunk by nearly 50% quarter–over–quarter and the net losses have been getting bigger incredibly fast.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This brings us to the latest press release, which was supposed to be an update on the latest quarter ended April 30, 2015. And while there was a lot of talking and forward–looking statements we failed to notice a lot of digits. CEO, Paul Rosenberg said that [[tagnumber 24]]MCIG’s [[tagnumber 25]]revenues can “[[tagnumber 32]]conservatively be projected to be in the 7–10M range for the fiscal year[[tagnumber 33]]” without informing us what currency they used for this estimate.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The “[[tagnumber 32]]great wall of text[[tagnumber 33]]” that [[tagnumber 24]]MCIG [[tagnumber 25]]published yesterday was sufficient enough to provide for an impressive 96.04% gain and the ticker closed the session with a price of $0.1039. Trading was also intense and we saw a total of 13.57 million shares find their new owners, generating $1.06 million in daily dollar volume, the biggest since the beginning of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Unfortunately, the correction was quick to come and, as of the writing of this article, we see [[tagnumber 24]]MCIG [[tagnumber 25]]sitting 24.93% lower at $0.078. Only time will tell if [[tagnumber 24]]MCIG [[tagnumber 25]]will sink even further or manage to regain some value. Doing your due diligence before making any investment decisions, however, is a must.[[tagnumber 2]]