mCig Inc (OTCMKTS:MCIG)’s Crash Continues
The crash that took mCig Inc (OTCMKTS:MCIG) down to $0.088 on Friday continued all throughout yesterday’s trading session, dragging the ticker another 18.18% down the charts.
Although this downfall may appear dramatic, it should have been anything but unexpected. After all, it was caused by a meaningless PR announcement of “the completion of the best quarter in company [MCIG‘s] history which ended April 30, 2015”.
Although the statements in the press release were certainly boastful and may have been impressive to people who don’t know to take them with a pinch of salt, it was clear from the get-go that this was just another PR driven pot-jump. Perceptive investors would have noted that the company gave no numbers in said press release – which more or less renders every statement in it unprovable and thus – meaningless.
And we’ve seen time and time again that jumps made possible by such PR announcements don’t last, as well as what happens when their volatility and momentum inevitably runs out. The ticker in question almost never retains its gains, because it has nothing else going for it.
Case in point – MCIG‘s meager financials:
- Cash – $200 thousand
- Total current assets – $771 thousand
- Total liabilities – $13 thousand
- Quarterly revenues – $88 thousand
- Quarterly net loss – $743 thousand
Judging by MCIG‘s PR, it seems that the company considers itself “a leading provider of technologies and services for the legal medical and recreational marijuana industry”. The above mentioned figures, on the other hand, make it look more like just another mediocre pot-stock than a “a leading provider” of anything.
In light of this, it wouldn’t be surprising to see MCIG‘s price corrected even further in the sessions to follow – which is why investors should take extra care when dealing with the company.
