Millennium Healthcare, Inc. (OTCMKTS:MHCC) Sinks on New Volume Spike
The OTC is a volatile tier of the stock markets and rapid swings in stock price are common. Millenium Healthcare, Inc. (OTCMKTS:MHCC) went through one such swing yesterday, dropping 20% to a close of $0.26 per share. Volume swelled back to over 1 million shares after a number of slower days.
Last time we looked at MHCC the company was targeted by few drive-by free pumps that coincided with the official announcement that MHCC expects Q3 revenues in excess of $6 million. The actual filing for the quarter came on Nov 14 and contained the following figures:
- $177 thousand in cash
- $14.4 million in current liabilities
- $6.3 million in Q3 revenues
- $3.8 million in Q3 net loss
The significant increase in revenues, both on a QoQ and a YoY basis, is due to the new $5.9 million from ‘distribution and placement of medical devices’. Expenses, however, managed to squish this great revenue boost and the company ended up with a seven-digit loss again.
The report also discloses that in October MHCC approved 12 million warrants to its executives, with an exercise price of $0.25. It doesn’t say on what date this happened but the market price seemed to follow suit with this decision and MHCC dropped near that level.
It’s true that the path to profitability starts with growing revenues and improving margins. It remains to be seen whether MHCC has what it takes to fence in its expenses and go to logging profits.