MediSwipe, Inc. (PINK:MWIP) Teeters on a Ledge
After bouncing up and down the chart throughout January, assisted by a number of pumps, MediSwipe, Inc. (PINK:MWIP) seemed to really take off in the wake of a shareholder conference call on Jan. 31. After the stock dropped Monday despite another weekend pump, MWIP wobbled in the last session on a large volume, closing virtually flat, with an increase of less than 1% or $.0004.
The company provides payment and security solutions for healthcare institutions, including medical marijuana dispensaries. In keeping with a consistent stream of press release updates, MWIP announced it will be providing its customers with another batch of patient identification cards and payment kiosks. The question is, what part of the press announcements signals positive developments around the company that are meaningful to shareholders, and what part is PR fluff that aims to maintain an air of hot action about the company.
Looking at MWIP‘s financial report paints a picture that’s a little different from the image of a booming business. The last available report is from Q3 of 2012 and contains the following numbers:
- $812 in cash
- $260 thousand in current liabilities
- $781 in quarterly revenue
- $246 thousand in quarterly net loss
The company has failed to record profit in both 2011 and 2012, stacking hundreds of thousand of loss instead. Adding to this convertible debt that is gradually converted into tens of millions of company shares, MWIP‘s outlook is taking an unpleasant turn. The company is virtually financing its activities by issuing stock and continuously failing to turn those investments into revenue.
MediSwipe CEO, Mr. Barry Friedman also used what little momentum the stock had gained in mid-January and liberally disposed of 1.5 million owned shares, selling them at a notch above $0.03 apiece – a move that, when unexplained, does little to promote investor confidence.
Considering the company’s past history of promotions, traders would do well to approach with extra care and do their own research.
