MEDL Mobile Holdings, Inc. (OTCMKTS:MEDL) Corrects After a Turbulent Session

After drifting sideways for nearly 5 months the stock of MEDL Mobile Holdings, Inc. (OTCMKTS:MEDL) began sliding down the chart with the start of October. The downtrend culminated in a new 52-week low of $0.1011 on November 7. In the last two weeks though the ticker was able to reverse its direction and managed to not only recover its losses but go even higher closing at $0.194 this Wednesday.

The daily traded volumes have also experienced a significant growth and yesterday 1.5 million shares changed hands. The last time the company saw such volumes was back in May. The increased attention, however, put the stock under too much pressure and it closed the day over 6% in the red at $0.181.

MEDL’s major appeal lies in their social media platform Hang w/ that is capable of live-streaming video and simultaneous chat. The app has attracted quite a few notable figures such as 50 Cent, Soulja Boy and Timbaland. Until recently the company did not generate any revenues through the Hang w/but on November 3 they finally launched advertising on the platform. Investors will have to wait for the next financial report to see how much will this influence MEDL’s balance sheet.

Still, so far their financials have been rather solid. At the end of September the company had:

• $238 thousand cash
• $529 thousand total current assets
• $513 thousand total current liabilities
• $909 thousand revenues
• $400 thousand net loss

Although the number are not that impressive and MEDL are still far from becoming a profitable entity they have been steadily increasing their revenues and compared to the same period last year they are 36% higher. The money was primarily received as fees for the creation of mobile apps for third parties but back in October MEDL signed a non-binding Letter of Intent to sell its app development division to BBK Holdings. There have been no updates about this deal since then but if they go through with it the company will be left only with its Hang w/ business.

Now that the stock has returned within the $0.18-0.20 price ranges it may once more remain there for quite a while. Even if you believe in the potential of their social media platform it is always for the best to use caution. Don’t forget that MEDL is still a pennystock company and any trades involving their stock should be precedent by extensive due diligence.