Medient Studios Inc (OTCMKTS:MDNT) Hits Yet Another 52-Week Low
We probably don’t need to tell you that Medient Studios Inc (OTCMKTS:MDNT)’s stock performance over the last few months hasn’t been what you’d call perfect. In fact, it’s been pretty appalling.
In a matter of less than a year, the ticker dropped from over $2 per share to less than $0.002. In other words, it lost more than 99.9% of its value. Shareholders are understandably upset about the performance and it seems that right now, even the optimistic press releases are unable to change MDNT‘s direction.
On Friday, for example, the company updated investors around the debt associated with the production and distribution of “Yellow” – a motion picture which should be released in the US at the end of August. Apparently, the major part of the liabilities have been satisfied and the rest of the debt will be paid off once the revenues start flowing in. The management team seem pretty confident that there will be no further problems, but it would appear that investors beg to differ.
The aforementioned announcement hit the wire about an hour before Friday’s opening bell, but instead of lifting MDNT off the ground, it resulted in two more red sessions. Yesterday, the stock slipped by another 13% and closed the day at $0.0019 per share. A 52-week low of $0.0017 was also registered and it seems that a trip to the triple zero levels, something that was unthinkable a couple of months ago, is now a very real possibility.
The question is: “Is there something that could turn the tables?“.
A couple of hours before today’s opening bell, a private investor called Timothy Stabosz filed a Schedule 13 form with which he informed the public that he owns a 5.4% stake in MDNT. That might not be such a bad thing.
If you do some research, you’ll see that Mr. Stabosz appears to be a serious investor. Back in 2011, he published a similar filing which said that he owns 7% of the issued and outstanding shares of P & F Industries, Inc. (NASDAQ:PFIN). Back then, PFIN was traded at around $4.60 per share whereas right now, it’s trying to break through the $7.80 mark.
In Item 4 of the filing, Mr. Stabosz expresses his thoughts on MDNT. Apparently, he reckons that the company possesses tangible value and has an interesting story to tell. He also thinks, however, that the constant stock issuance over the last few months has destroyed the ticker’s value. He advises Manu Kumaran, MDNT‘s CEO, to appoint a Director who will voice the shareholders’ opinions and he also urges him to start looking for “more appropriate and legitimate sources of capital“.
If you have been reading through our articles regularly, Mr. Stabosz’s words won’t be new to you. We have been discussing the severe dilution numerous times on these pages. Unfortunately, while the involvement of serious investors might get some people excited, it won’t change the fact that MDNT need to find a way of cutting down on the horrific stock issuance.
While MDNT was losing ground yesterday, DNA Brands, Inc. (OTCMKTS:DNAX) was gaining it at a rapid rate. In a matter of just six and a half hours of trading, DNAX managed to shift more than $2.3 million worth of shares while the price increased by a staggering 525%. Terra Tech Corp (OTCMKTS:TRTC), on the other hand, logged its third red session in a row and wiped out another 15% of its market cap.