MediSwipe Inc. (OTC:MWIP) Falls Fast on Weakening Promotional Effort

The new year started on a cautious optimistic note for a lot of penny stocks. As we are tracking the movement of MediSwipe Inc. (OTC:MWIP), we have to note its first fall in six trading days. The 3-cent stock lost a touch more than 10% on a nearly 60 million stock trading volume, taking profits as the stock has soared 15 times since the middle of December last year.

Gaining on a double bet of serving the medical marijuana business and activity as a payment processing company, the MWIP ticker has been promising, climbing steadily without a visible promotion, but with plenty of press releases. The fall in price comes only a day after the company missed to remind of itself with a new message.

With its new office, MediSwipe faces the challenge of working within its financial limitations:

• $812 cash

• $260,911 current liabilities

• $246,859 net loss

The company, formerly Cannabis Medical Solutions, still trades near its all-time high of 35 cents and so far has not shown a trend of sinking. Yet the ticker relies on fresh information to keep up the buying. The company changed six names and different business descriptions before coming up as MediSwipe, a usual practice for penny stock companies, but one which raises a few red flags.

One of the biggest jumps for the MWIP ticker came when it was mentioned in a summary by Club Penny Stocks, via PR Newswire. Our database does not contain mailings from this promoter, yet we have a past record of its picks. The pumper’s usual budget for email distribution is more than $22,000.

The MWIP pick may only improve the record for Club Penny Stocks, as its ongoing promotion of Chancery Resources Inc. (OTC:CCRY) seems to be going nowhere fast, falling seriously in the past weeks. An active promotion could do even more to pump the MediSwipe price, and only the future will show if it can keep up its reasonable levels or will fall back to its baseline.

MWIP is also a part of the dot-bong boom, the so-called rise in smallcap companies promising high earnings from the medical marijuana market. The leading ticker in this sector, Medical Marijuana, Inc. (OTC:MJNA) is holding up relatively well despite the lack of constant promotion and in the light of legalization in more states promises real possibility for development, along with reasonable funds and financial strengths.

Still, in the case of small cap companies it is best to avoid investing if you are not prepared to be exposed to rapid and unexpected losses.