MediSwipe, Inc. (OTCMKTS:MWIP) Regains Some Of Its Losses
The fourth climb of 2014 climb for MediSwipe, Inc. (OTCMKTS:MWIP)’s stock ended in the middle of March, when the ticker reached above $0.50 per share. By Tuesday this week it had lost a total of 36% from its value, standing at $0.33 PPS.
Before yesterday’s session, however the company came out with a press release announcing that they have entered into an agreement to purchase 80 acres of land in Colorado for marijuana cultivation, which they will lease to tenants.
This makes the land they own double its size to 160 acres, after it was announced that they have acquired 80 acres earlier this month. They also bragged that the new land has a ‘decreed non-tributary well’ water right, which is rare and will help with the water demand for growing.
Needless to say, this stirred up things a bit and the company stock climbed 16% on a decent volume. The total amount of shares that changed their owners during the session came at 1.2 million and generated $485 thousand in trade value.
Still, the company recently filed its annual report for 2013, which didn’t look very rosy and might have bad consequences for the stock.
- cash: $108 thousand
- current assets: $450 thousand
- current liabilities: $1.3 million
- revenues: $143 thousand
- net loss: $4.4 million
Yes, the revenues have doubled, but what is most bothersome is the net loss, which has gone up by a whopping 857% compared to 2012. We see a similar situation in the current liabilities section, which shows a 412% increase.
Now, the question remains: Will MWIP manage to become profitable soon enough to manage to back up its $24 million market cap? As always, this is for time to tell, but if you are thinking of betting on this particular stock, be sure to do your due diligence and weigh out the risks first.
Yesterday was a good day for other companies in the medical marijuana sector too. Hemp, Inc. (OTCMKTS:HEMP) went up by 33%, while Tranzbyte Corp. (OTCMKTS:ERBB) added 21% to its value.
