Microchannel Technologies, Corp. (OTCBB:MCTC) Marks Surprising Activity
Microchannel Technologies, Corp. (OTCBB:MCTC) is a mystifying ticker, one which went without noticeable activity for months, only to burst forward with record buying. On Thursday, MCTC ended with a gain of 246% to $0.052, on buying volumes of $673,000. Nearly seven million shares changed hands. 
The pumpers, OTC Rockstar, did not fail to notice the spectacular climb, and took up the ticker on March 6th, for a no-compensation email that could boost the record for the promoters. But OTC Rockstar mentioned that though the daily gain reached a gap of 700% at one point, this was just a best-case scenario, and the selection was for veteran investors which could unload their holdings at the right moment fast enough. StockMister also took up the ticker with the same intentions.
MCTC is a company that assists in setting up businesses in distant locations, offering expertise with local arrangements of everything from translation services and call centers to employee background checks. There is a special focus on the Asian market. With that niche activity, MCTC reveals the following financial landmarks:
- $10,000 cash
- $5,700 total current liabilities
- No revenues
- $556,893 net loss since inception
What is worrying is that MCTC has a working website with many promises, and yet it has marked no revenues for the last 105 months. Then, there is the problem of little past history for this company, including its shell status on the OTC profile.
In itself, MCTC did little to add to the hype, with no significant PR of its own, except for an 8-K filing, outlining the structuring of a promissory note to one of its larger shareholders. MCTC now owes $70,000 to Mr. Jatinder S. Bhogal, who holds in excess of 10% of the company’s stock.
Added to the presence of at least one significant shareholder, MCTC has a relatively low number of outstanding shares, around 53 million. We have no available information of the free float, or the authorized shares. The company’s market cap as of the moment is a bit above $2.8 million, which is comparatively low to other OTC companies, but cannot find a base in the company’s quality of business, at least according to the records.
But all would be a bit better if at least MCTC showed some office space. The shell company is listing an address in Maryland, in the proximity of an office building. But the website gives a UK address that leads us to a country area with no visible buildings.
No wonder then that investors’ forums consider MCTC mostly a risky venture that jumped only on hype from promoters.
When it comes to OTC companies, a good, solid indication of activity is usually better for stock stability. We recently had the case of Strategic Global Investments, Inc. (OTCMKTS:STBV), which jumped on promises of a switch in tracks to a marijuana business, but went on to lose more than 95% of its value in a steep slide back to triple-zero positions.
Discovery Minerals, Ltd. (OTCMKTS:DSCR) also switched from precious metals to cannabis agriculture, but is now showing struggle, barely keeping the $0.002 positions it managed to reach, after months as a triple-zero ticker.
If you like MCTC for its OTCBB status, keep in mind that we know little of the company’s true value, but volatility of the stock price is very probable, so plan your investment without reckless enthusiasm.
