MEDL Mobile Holdings Inc (OTCMKTS:MEDL)’s Ride is as Choppy as Ever

As you can see from the chart on the right, MEDL Mobile Holdings Inc (OTCMKTS:MEDL) isn’t really the most consistent performer on the OTC Markets. There are periods when nobody seems interested in the stock, but there are also some huge volume spikes.

The same thing can be said about the price movement. On April 30, for example MEDL surged out of the blue and registered a whopping 93% in daily gains. Unfortunately, on the very next day, it crashed and wiped out around a third of the market cap.

Even when you take a look at yesterday’s intraday chart, you’ll see that the ticker’s behavior is extremely unpredictable. MEDL opened the day at $0.18 per share and during the first few minutes, there was nothing to suggest that it will be able to finish the session with $786 thousand in dollar volume. Then, it suddenly broke out and ran to an intraday high of $0.25. Unfortunately, it failed to keep the gains and it finished the day at $0.205, but this is still around 10% above Friday’s close. Once again, there’s no immediately obvious reason for the erratic chart movement which means that there’s no way of telling what will happen next. Still, that won’t stop us from taking a look at the company and seeing how it has been doing over the last couple of months.

The latest 10-Q covers the first quarter of 2014 and it was published about a week ago. As is often the case, it’s not really perfect, but it does have some strong points. Here’s a summary of the most important figures:

• cash: $147 thousand
• current assets: $543 thousand
• current liabilities: $408 thousand
• quarterly revenues: $623 thousand
• quarterly net loss: $460 thousand

You can see straight away that the cash reserves are not huge and a positive bottom line is a long ways off. Still, there’s been a 32% increase in revenues year over year and the net loss has shrunk by as much as 43% when compared to the one registered during the same period of 2013. All in all, the financial statement shows that MEDL still have a long way to go, but it also tells us that they’re making some progress.

If they keep pushing forward, the more patient shareholders might be rewarded in the end, but that doesn’t mean that a potential investment should be made without the necessary due diligence.

A good starting point for your research might be the Stockholders’ Equity (Note 7) section of the latest 10-Q. It tells us that on December 31, 2013, an accredited investor purchased 4.4 million shares of common stock for $550 thousand ($0.12 per share). For the record, back then, MEDL‘s market price was hovering around $0.25.

If similar financing deals appear in the future, they could cause some dilution and they could also present a profit opportunity for the accredited investors who are receiving the discounted stock.

Tranzbyte Corp (OTCMKTS:ERBB)’s shareholders are facing pretty much the same problem. As you can see from our articles, quite a lot of stock was issued at $0.0005 per share during the first quarter of 2014. At the moment, even after wiping out around 80% of the market cap in just over two months, ERBB stands at $0.02.