Medbox Inc (OTCMKTS:MDBX) Going Up

[[tagnumber 0]][[tagnumber 1]]We saw the stock of Medbox Inc (OTCMKTS:MDBX) slide down the charts in the final sessions of last week and things didn’t look pretty. The descent was quite steep and the volumes increased significantly, meaning that a lot of people got cold feet and decided to get out while the losses were still minimal.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The news regarding the settlement of a series of lawsuits that came in the second half of last month had a short–lived positive effect on the ticker. This is probably due to the fact that the terms of the settlements were not disclosed and further share issuance was a possibility, especially considering the recent increase of the authorized share amount by nearly four times.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Meanwhile, the numbers that the company has been posting in its quarterly reports don’t look very comforting. A quick example of the ones contained in the balance sheet for the second quarter shows just that.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 13]] [[tagnumber 14]]cash: $564 thousand[[tagnumber 15]] [[tagnumber 14]]current assets: $1.65 million[[tagnumber 15]] [[tagnumber 14]]current liabilities: $13.16 million[[tagnumber 15]] [[tagnumber 14]]quarterly revenues: $84 thousand[[tagnumber 15]] [[tagnumber 14]]quarterly net loss: $11.39 million[[tagnumber 15]] [[tagnumber 24]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Although the company has a decent amount of cash on hand and has actually started generating revenues we can’t go past the overwhelming amount of liabilities and the massive net loss that it recorded during the second quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Still, a press release from yesterday managed to reverse the fall of the ticker. The company announced that former state banking and medical cannabis regulator from Chicago, Manuel Flores has joined the company’s board of directors.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This brought a good 15.20% gain for the company stock and we saw the ticker close at $0.072 per share. The volume was more than two times the 30 day average and the 4.29 million shares that changed their owners generated $315 thousand in daily trade value.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We see that [[tagnumber 40]]MDBX[[tagnumber 41]] is already sitting 9.58% in the green as of the writing of this article, so this might be another successful session for the ticker. This, however, doesn’t mean that you should skip doing your due diligence and weighing out the risks before putting any money on the line.[[tagnumber 2]]