MCig, Inc. (OTCBB:MCIG) Unrolls New $2 E-Cig, Tries to Stem Losses

For a range of legal cannabis tickers, the production of vaporizers or electronic cigarettes looks like a ticket to publicity and success. In the case of mCig, Inc. (OTCBB:MCIG) the promises are padded with a real product. Still, MCIG has slowed its gains, and is struggling to get back on track. The net daily growth on Wednesday was limited. MCIG added 2.66% to $0.54, on buying volumes of 1.38 million. While MCIG was more actively sought in recent weeks, the volumes for marijuana stocks continue to shrink, not exceeding $7 million even for the most active tickers. MCIG0417.png

MCIG is bidding for attention with its newest PR, outlining its newest product, an $2 electronic cigarette. The news was taken up by Seeking Alpha, meaning that MCIG may end the week with some extra publicity. At the low price, bargain buyers may return to this relatively stable MMJ stock. VAPR0417.png

The Seeking Alpha article circles around electronic cigarettes and their special challenges, and is only related to MCIG as a side topic. Still, it appears in the company’s feed and adds to the publicity. MCIG itself bets more on selling the budget version nicotine-free vaporizing e-cig. The device is already selling online, even through a specially created website.

On the whole, MCIG is attractive for its higher tier ticker, and the financial situation that contains much less deficits than other OTC companies. The latest available report for MCIG reveals:

  • cash – $37 thousand
  • current assets – $91 thosaund
  • total current liabilities – $22 thousand
  • revenues – $85 thousand
  • net income – $10 thousand

Unfortunately, we still can’t know when MCIG will break through with its e-cig products. Experts still warn that those novel devices may not be the key to success, as there are still regulatory doubts about potential harm. So far, the attitude of Big Tobacco companies is also tentative, and most of the offers come from smaller OTC companies.

In the case of Vapor Brands Int’l, Inc. (OTCMKTS:VAPR), the fallout was steeper and more in line with the general trend in the sector. VAPR peaked at $0.40, and only after a day of recovery stepped a bit higher, toward $0.15.

The other strategy is that of Fortitude Group, Inc. (OTCMKTS:FRTD), which also promised its own vaporizer, only to present an ugly prototype device with no chances in an already well-supplied market. FRTD rebounced a bit to $0.0285.

If you decide to trust MCIG for its higher quality as a business, keep in mind that almost all MMJ stocks show signs of bubble conditions, and price ranges that are unusual and a result of PR or promotions. In the case of MCIG, make sure you can afford setbacks, even if you are purchasing at what you see as a bargain price.

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