MEDINAH MINERALS INC. (OTCMKTS:MDMN) Still In The Red
MEDINAH MINERALS INC. (OTCMKTS:MDMN) had a mystery run that lasted no less than eight sessions before coming to an abrupt red stop last Friday. Things only got even more intense on Monday, as the company lost no less than 19.90% of its market value in the span of a single session. Yesterday saw it fall by another another 7.67%.
MDMN opened with a huge gap down on Monday that fateful session, and failed to recover the ground it had lost, despite climbing up significantly as the closing bell grew nearer. Stock prices dropped as low as $0.063 before recovering somewhat, and in the end the ticker managed to close at $0.0710. But what could have caused this sudden and dramatic drop?
Although it may pain MDMN enthusiasts to hear this, the company didn’t have much reason to go up as suddenly and aggressively in the first place, so it’s really no wonder that it is now crashing this hard. Some fundamental research shows passable financials at the end of last year, but nothing much to write home about:
- cash – $337 thousand
- total current assets – $956 thousand
- total liabilities – $411 thousand
- sales – $1 million
- net income from operations – $343 thousand
A net income of $343 thousand is certainly more than most penny stock mining companies can boast, but hardly enough to warrant the company’s ridiculously overblown market cap of $70 million – and that’s after three consecutive plummets.
Another off-putting fact about MDMN is the possession of 35 million preferred shares of stock by president and CEO Mr. Juan Jose Quijano Fernandez. Said shares could be converted into TEN TIMES that amount of common stock shares at any time. This number is more than a third of the company’s current amount of shares outstanding – which is a massive dilution and could have an enormous negative impact on MDMN‘s market value. On that note, investors are advised to keep in mind the fact that the company currently has 3 billion shares authorized, so it would probably be wise to be extra wary of dilution.
MDMN‘s disinclination to keep its investors informed may also be considered an issue. The company’s tendency towards vague and infrequent press releases has hurt its stock in the past, and it may do so again.
Another company that is currently struggling with the market is Creative Edge Nutrition, Inc. (OTCMKTS:FITX), who lost 6.46% of its value to market volatility yesterday.
