MEDL Mobile Holdings, Inc. (OTCMKTS:MEDL) Goes Through the Roof on Record Interest
The stock of MEDL Mobile Holdings, Inc. (OTCMKTS:MEDL) began 2013 on an extremely positive note. The company surged from a low of 10 cents per share to reach half a dollar in a little more than a month. For the rest of the year though MEDL have been on a slow ride towards the bottom wiping nearly half of its gains.
How will the company fare in 2014 remains to be seen but during yesterday’s session MEDL simply exploded. The first hour of trading didn’t bring anything surprising but then MEDL shot up and in minutes found itself above 40 cents per share. Although the stock took a step down and closed at $0.35 it was still 46% above its previous close.
In the past the company has made similar surges but the 7.8 million shares that got traded during the day are an absolute record. Just for comparison the average traded volume for MEDL is just 87 thousand shares. Such a tremendous increase cannot be easily explained but in the past months MEDL has been starting to attract attention.
For the last three years the company has operated in one of the fastest growing sectors- the development of mobile applications. MEDL has been hired to create apps for such companies as Hyundai and Taco Bell. Recently their efforts have moved away from creating apps for third parties in order to concentrate on the development of their Hang w/, a live-streaming social-media platform as they describe it.
In the latest PR announcement they revealed that Hang w/ has passed the one million downloads mark just 9 months after its launch. The program has certainly been noticed and the company boasts 50 Cent, Timbaland and Paula Abdul among its users. The problem is that currently they are not generating revenues through it and we are not sure how often such celebrities are going to be streaming live videos.
In the 2.0 update MEDL introduced “coins” that are “eventually” going to be used for digital purchases. Another possible stream of revenues is the inclusion of ads during broadcasts. For now their fundamentals are stable enough to sustain their operations and more importantly investors have not been put through any alarming dilution of the common stock.
At the end of September MEDL reported the following financial results:
- $702 thousand cash
- $1 million total current assets
- $531 thousand total current liabilities
- $669 thousand revenues
- $907 thousand net loss
The number of outstanding shares is 45 million out of 500 million authorized. Investors should keep in mind that MEDL‘s success is heavily reliant on how widespread their program gets. If they fail to do it Hang w/ will be just another of the million apps fighting for attention in the already crowded market.
Another company that displayed almost similar chart performance as MEDL is Nutrastar International Inc. (OTCBB:NUIN). On Wednesday they surged by a little less than 50% and reached $2.99 per share after months of sporadic trading. Yesterday the stock closed at $3.45 which was lower than its opening price but still represented a gain of 15%.
