Promotion-elect MediSwipe Inc (PINK:MWIP) is Hot Shot Stocks’s Next Shot in the Dark

Hot Shot Stocks have picked up MediSwipe Inc (PINK:MWIP) as their latest promotional pick. According to the email we received late last night, the campaign is entirely targeted towards MWIP‘s market performance today. Just like any other pump job, this one also raises a red flag on the stock, which means that risk lovers had better take precautions while risk-averse investors would be better off not trading with MWIP shares at all.

MWIP closed last week on an exceptionally high note. Not only did the stock close at a six-month high of $0.044 per share, but it also shifted in excess of 30 million shares, or almost twice as many as their daily average equivalent. The move came hard on the heels of the announcement of a conference call hosted by CEO B. Michael Friedman focusing on corporate updates with regard to the marketing and sales plans for 2013. Scheduled for Jan. 31, the call must have been a fairly uplifting experience for stockholders considering how well MWIP shares performed on the following day. Now, the pump job on MWIP is aimed at capitalizing on Friday’s jump. However, we suggest that you avoid getting your hopes up too much.

Judging from MWIP‘s technical position on the chart, it looks poised for a down move rather than further growth. At 74, the RSI has already brought forward an oversold alert on the stock. Another indicator that suggests that volatility is about to increase sharply is the tightening of the Bollinger Bands. Altogether, from a technical point of view, MWIP seems more likely to go down.

The situation is no different in terms of fundamentals, either. The company is heavily indebted and has been incurring losses since inception. Moreover, MWIP has maintained a negative working capital gap for years on end and has so far failed to go in the black. As it is, providing patient security solutions and creating financial products for the medical marijuana and health care industry as a whole isn’t really working in the best interest of the company’s shareholders. CEO Friedman might know this very well, considering that he sold 1.5 million MWIP shares roughly two weeks ago. In this respect, why he got rid of them is a question that deserves an answer.

Before you decide on getting in nonetheless, there is no harm in studying Hot Shot Stocks’s historical profile to see how other penny stocks pumped by the same guys ended up on the charts. You will hardly like what you will see there.