Medican Enterprises Inc (OTCMKTS:MDCN) Surges On Record Volume

During yesterday’s trading the stock of Medican Enterprises Inc (OTCMKTS:MDCN) finally made a more pronounced move up the chart. Even after opening at $0.0011 and actually falling down to a low of $0.00095 the ticker was able to bounce and by the time of the closing bell it was sitting at $0.00135. This means that MDCN added nearly 23% to their value. Another important fact is that the traded volume for the day of more than 254 million shares is unprecedented in the history of the stock.

The impressive gains had an immediate impact on some investors and around the various message boards quite a few overly-optimistic posts began to crop up. It is true that the positive outcome of the sessions is definitely encouraging but MDCN is still sitting at record lows. Just last Friday they registered a new 52-week low of $0.0009. The performance for the last couple of weeks has been nothing short of a total nightmare and even after yesterday’s gains the stock is trading nearly 98% lower compared to its April 20 closing price of $0.06.

Now let us ask you this question – Are you willing to put your hard-earned money in a company that at the end of March had:

• $9298 cash!!!
• $73 648 total current assets
• $9.7 million total current liabilities
• ZERO revenues
• 5.7 million loss from operations
• $108,6 million net loss

As if these numbers weren’t horrific enough we should also warn you about the crushing dilution of MDCN’s common stock. At the end of April due to the rampant issuance of discounted shares Medican had to do a 15-for-1 reverse split that left them with approximately 47 million outstanding shares. As of May 20, however, that number had already surpassed 134 million while, as we said earlier, yesterday 254 million shares changed hands. Although it is entirely possible for the entire O/S to be exchanged several times during a single session a far more likely explanation is that the dilution is still ongoing.

And lastly, it has been 9 days since the May 31 deadline for the acquisition of the 7,200 sq. ft. property in Phoenix, AZ, but for now MDCN are keeping complete silence. If the deal has once again been postponed, alongside the acquisition of the 67,000 sq. ft. facility which was first announced seven months ago, the stock might find it extremely difficult to recover most of its losses.