mCig Inc (OTCMKTS:MCIG)’s Momentum Didn’t Last
mCig Inc (OTCMKTS:MCIG) managed to gain a whooping 96.04% in a single session of frenzied buying when its latest hot PR hit the web, but vague uninformative press releases an only do so much. As can be seen ton the charts, the ticker is already heading down, back to where it started – and it is moving fast.
Intelligent and perceptive investors would have noticed that there were quite a few things wrong with ECIG’s latest PR. For one, it seems that MCIG fancies itself “a leading provider of technologies and services for the legal medical and recreational marijuana industry”. Suffice it to say that if a company that has just 200 thousand in cash on hand is in truth one of the pot-stock industry’s leaders, the branch is really in trouble.
The bold statements don’t end here, however – no, not by a long shot. In a barrage of unsubstantiated boasts ECIG declared that it “is proud to announce the completion of the best quarter in company history which ended April 30, 2015”.
Once more, investors would notice that MCIG management may talk big, but no real proof of its claims is given anywhere.
And, judging by previous results, investors have quite a few serious reasons to doubt MCIG‘s commercial achievements:
- Cash – $200 thousand
- Total current assets – $771 thousand
- Total liabilities – $13 thousand
- Quarterly revenues – $88 thousand
- Quarterly net loss – $743 thousand
Those are the figures given in MCIG‘s latest financial report. Suffice it to say that they are not exactly stellar, in spite of the heightened expectations.
Long story short – MCIG seems to still be able to rise on PR, but said volatile hype-driven jumps don’t last long and end abruptly and violently. This is why long term investors and opportunistic traders alike should be extra wary of the company.
