MediSwipe, Inc. (OTCMKTS:MWIP) Holds Steady After Crash
The last two sessions saw the stock of MediSwipe, Inc. (OTCMKTS:MWIP) wobble along steadily, not really moving in either direction. MWIP did manage to close over 6% up yesterday which is probably little consolation for people who got in while it was surging over $0.6 per share.
The company exploded in the first days of the new year, surfing on the wave of disproportionate hype surrounding the first legal recreational marijuana sale in the state of Colorado. Volume picked up immensely and the price followed. With its share price adjusted up by the 1-for-10 reverse split in early December, MWIP shot as high as $0.65 per share intra-day on Jan. 6.
The three-day run which more than quadrupled the ticker’s share price was, logically, followed by a three-day smackdown. This level of volatility was shared by virtually all marijuana-related stocks on the OTC and they all moved in similar patterns, with minor differences – mostly the point in time when someone decided to cash out at the new ludicrous highs.
MWIP came up with a single press release right at the peak of the climb but that didn’t prevent the crash that followed. The company announced that it is now branding and will soon be launching its vaporizers dubbed Mount Blunt. MWIP‘s financial state is not exactly stellar:
- $153 thousand in cash a/o Sep 2013
- $47 thousand in quarterly revenues
- $182 thousand in quarterly net loss
Despite those figures, the company expressed high hopes of Mount Blunt vaporizers contributing significantly to its future revenue streams. It seems that once again general sector excitement and a surge in recreational sales in the state of Colorado is equated to a guarantee for company success, which is a logical fallacy.
Even though MWIP appears to have cooled down, traders are advised to tread with care as the sector is not done wriggling yet and more volatility may hit at any time.
