Medbox Inc (OTCMKTS:MDBX) Rushes Towards a Dime
It seems there is no stopping Medbox Inc (OTCMKTS:MDBX)’s mad descent on the charts. Yesterday the company dipped in double digits yet again. MDBX closed 11.7% down on its second heaviest volume for the past month, at 1.7 million shares traded. By the bell MDBX stopped at $0.128 per share.
By this point in time it seems like it might no longer be about how soon MDBX can stop crashing but how soon shareholders managed to get out to curb their losses. The company has dropped from over $6 per share in early January 2015 to this latest low of $0.12, marking a crash of 97% year-to-date.
By now everyone who had even a cursory interest in MDBX should know why the company is in such dire straits. The problems with revenue recognition in multiple financial reports, the SEC investigation, the SEC and federal grand jury subpoenas the company was served, the subsequent March 2015 submission of the restated filings, the huge discrepancies between figures in the original and corrected reports.
All of this combined with an endless stream of Form 4 filings showing insider selling and a Q1 report that showed $4.4 million in net loss on meager revenues of $66 thousand melded together into a perfect storm that is still pushing MDBX down the charts.
How far the ticker is going to slide is virtually impossible to predict. Message boards are full of doomsday soothsayers who want of impending triple zero prices, only to be opposed by the equally extreme view of people who claim they have been buying the stock for almost a month as it kept sliding downhill, rolling with the punches and dreaming of a better tomorrow. Neither view is balanced but one is less unwise.
