mCIG, Inc. (OTCBB:MCIG) Battles FDA Regulation of Electronic Cigarettes

The fall in price for mCig, Inc. (OTCBB: MCIG) looks gradual, with days of buying, but still the trend is clear, and somehow worrying. MCIG is one of the few marijuana tickers that boasts a pure-play business model and relative stability. MCIG slid by a slim 2.4% on Thursday, going down to $0.551, as selling reached $1.54 million. MCIG0425.png

For now, MCIG is still a part of the Marijuana index, with a weight of 3.20%, and this gives the ticker enough exposure to keep trading volumes within reasonable limits. MCIG has some days of increased buying, and the stock movement is reacting well to new PR. VAPE0425.png

Now, MCIG has to battle a bit of bad publicity, as the FDA starts targeting e-cigarettes for regulation. The MCIG brands are said to be safe and will probably continue to sell. It is unknown if MCIG will fall under the scrutiny for nicotine-containing e-cigs, as the main focus of the business is to convert the devices for use as medical and recreational cannabis vaporizers.

MCIG is still attractive for its relatively stable financial position, with:

  • Cash – $37 thousand
  • Total Current assets – $91 thousand
  • Total current liabilities – $22 thousand
  • Quarterly revenues – $85 thousand
  • Quarterly net income – $10 thousand

While the reserves are thin, at least MCIG is not a sink hole for money, and its business idea remains clear. Investors’ forums are showing optimism that MCIG may recover, and there is trust that MCIG is selling its innovative items. But we’ll have to wait a while before we have a clearer picture of the sales, and an official report with more robust earnings.

But the e-cig business is certainly not a guarantee for success. Vape Holdings, Inc. (OTCMKTS:VAPE) went through a disaster, sinking by more than 50% in a day as it proved it could not hold onto the higher, reverse-split prices. VAPE is now back above $4 on recovery buying, but the ticker will have to do a bit of a search for the right price position.

Vapor Brands Int’l, Inc. (OTCMKTS:VAPR) is still fighting for some slim investors’ interest, as the falling price may be due at least for a little rebounce. The ticker is having tentative daily gains, and hovers around $0.14, a small improvement over the last few days.

MCIG has the advantage of posting timely corporate updates, and is clearly not about the fast stock price gains. Still, the movement shows some of the exuberance that was typical of the pot stock boom. It is best to be aware of this, to avoid surprise setbacks instead of the expected rising trend.

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