Medbox Inc (OTCMKTS:MDBX) Moves Up On Optimistic News

[[tagnumber 0]][[tagnumber 1]]After a rush up the charts in the end of August we saw the stock of Medbox Inc (OTCMKTS:MDBX) crash in the charts and lose about 50% of the gains that it had previously made. Since then, the ticker has been having ups and downs, but the general direction in which it was headed is downward.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This is nothing surprising, as [[tagnumber 6]]MDBX[[tagnumber 7]] has quite a few red flags. The first and most obvious one is the financial situation of the company. A quick check of the numbers contained in the latest quarterly report of the company shows a picture that is quite grim.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $564 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $1.65 million[[tagnumber 13]] [[tagnumber 12]]current liabilities: $13.16 million[[tagnumber 13]] [[tagnumber 12]]quarterly revenues: $84 thousand[[tagnumber 13]] [[tagnumber 12]]quarterly net loss: $11.39 million[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]These numbers are quite terrible, but they are not the only trouble [[tagnumber 6]]MDBX[[tagnumber 7]] is facing. The company has accumulated a lot of toxic debt that comes with massive discounts. Furthermore, there was a class action lawsuit against [[tagnumber 6]]MDBX,[[tagnumber 7]] regarding the financial results for 2012 and 2013, as well as the interim quarterly results for the said years and the first nine months of 2014.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Yesterday the company announced that it has reached a settlement that “is not expected to have a material adverse effect on the company’s financial position or results of operations”. This might mean that [[tagnumber 6]]MDBX[[tagnumber 7]] has settled the lawsuit with more share issuance that will bring further dilution.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Still, the news were received well and after a 16.67% gain we saw [[tagnumber 6]]MDBX[[tagnumber 7]] return above the 10 cent per share mark and close at $0.105. While the ticker was climbing a total of 1.37 million shares changed their owners and generated $141 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]We see a bit of hesitation in today’s session, however, and [[tagnumber 6]]MDBX[[tagnumber 7]] might very well finish the week red. In any case, do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]