Medican Enterprises Inc. (OTCMKTS:MDCN) Bounces Like A Dead Cat
Medican Enterprises Inc. (OTCMKTS:MDCN) had another horrible red session yesterday, but is already more than 20% up in today’s early trading. How can this be?
There is an old saying on the market – even a dead cat can bounce if thrown from high enough. And, as can be seen from the charts, MDCN has been falling long and hard, just like the proverbial deceased feline.
There were good reasons behind its decline as well. In spite of what pumpers and twitter touters have to say on the matter, the company’s financials were simply horrendous:
- Cash – $9298
- Total current assets – $73 thousand
- Total current liabilities – $9.7 million
- NO REVENUES
- Net loss – $108 million
However, as weak as those numbers were, they could not have brought the ticker so low on their own. No, it was the endless torrent of toxic dilution that really did MDCN investor value in. Here’s an example of what we’re talking about:
As of April 15, 2015, the Registrant had 447 million shares of common stock outstanding
A 1 for 10 reverse split brought the company’s common stock count to about 44 million on April 20, 2015
The number of shares of Common Stock outstanding on May 20, 2015 was 134 million
That’s how bad the company’s funding policies are for investor value.
These figures should be taken as a warning – MDCN‘s stock price is up right now, but the downpour of discounted shares may continue at any time, slamming the ticker right back to the ground.