MediSwipe, Inc. (OTC:MWIP) Spreads with Premier Equity Reports

We’ve been tracking MediSwipe, Inc. (OTC:MWIP) and noticed its strong start of the new week, up more than 30% on Monday’s trading. The beginning of 2013 brought the MWIP stock to an all-time high, adding 135% in the first trading days, and leaving us wondering where the ticker will go.

The latest news for MWIP aim to expose the company to the growing potential of the medical marijuana market as more US states allow the restricted substance for therapeutic usage. MediSwipe moved its offices to Birmingham, Michigan, effective immediately hoping to sell its dispensary database to track the distribution of medical marijuana.

MWIP is actually a stock of two industries, presenting itself both as a financing company working out payments for the medical industry, but also as attached to the medical marijuana industry, where many smallcap companies try to make their stock grow on the free publicity of legalization laws.

Despite the promising future, the company still faces the challenge of limited resources:

• $812 cash

• $260,911 current liabilities

• $246,859 net loss

The company is being promoted in low-bidget mailings, and also featured in a press release by PremierEquityReports.com, a well-read web publication. This further spread the news of the new office and business opportunities. The above mentioned report claims to serve investors with underpriced stocks promising to rise in the future. It features in our database with five promotions with an average budget of $83,000.

A similar message came from a collection of recommended tickers from The Stock Freak, where MWIP featured was featured as a promising and actively-traded ticker. This subscription-based stock picker was not featured in our database.

Premier Equity Reports is trying to gain a record of profitability with New Western Energy Corp. (OTC:NWTR), a currently promoted ticker. This stock has shown gaining potential, yet also a possibility for massive selling within a single day, losing more than 20% and perhaps falling to a rockier bottom when the promotions finally stop.

In the case of companies hyping their growth potential it is best not to invest money you cannot afford to lose. Although MWIP shows solid growth, it also has the possibility to fall rapidly when the promoters abandon the ticker.