Mimvi, Inc. (OTCBB:MIMV) Explodes in The First Session for The Week
Even though Mimvi, Inc. (OTCBB:MIMV) had some sessions ending in the red recently, their overall movement is in an upward direction. Yesterday they made a big step up, after a promising review on Seeking Alpha, with a high gain in price and huge investor interest that was expressed in the massive volume of traded stock.
The review was posted in the middle of the night and its effects were evident from the beginning of the session. MIMV gapped up and opened $0.10 and jumped as high as $0.1644, while being heavily dumped. It instantly crumbled, but managed to reach another peak before sliding down to its opening price.
As trading quieted down, the price went a bit higher and continued to move through the day with no big changes until MIMV closed the session 51% up from the previous day, at $0.138. The volume of traded stock was more than 15 times their average with a total of 3.1 million shares that switched hands, which generated a trade value of $420 thousand.
The review that helped generate such interest in the stock emphasized on the growing business of the company and justified the overwhelming expenses with the acquisition of Adaptive Media, Inc. Let’s take a look at the numbers of prime interest from the Q2 report in question and see what the situation is for ourselves.
- cash: $46 thousand
- total current assets: $359 thousand
- total current liabilities: $1.1 million
- revenue: $27 thousand
- net loss: $3.25 million
As you can see, the expenses are simply huge. A big part went for the Adaptive Media merger consideration, but we see that the administrative expenses have also doubled. Money spent on legal and professional fees has increased 181% and we see that executive compensation also went up 128%, which is quite a lot considering the low revenues.
We still haven’t seen the financials of Adaptive Media, but there are claims that they have made $757 thousand in a little over a year. We also consider a paid promotional campaign as a possibility for the near future, due to the massive amount of share held by people in leading positions at MIMV.
All in all we consider MIMV a risky investment choice. If you do have any thoughts on investing in the ticker be sure to do a lot of due diligence and weigh out the risks.
Among the other companies that had a good start of the week we see Alkaline Water Company, Inc. (OTCBB:WTER) who gained 20% on a decent volume and closed the session at $0.60. The situation wasn’t that rosy for Virtual Piggy, Inc. (OTCBB:VPIG), who lost a hefty 43% on a high volume that helped generate a trade value of $850 thousand.
