mCig Inc (OTCMKTS:MCIG) Avoids A Red Close

The stock of mCig Inc (OTCMKTS:MCIG) experienced a rather turbulent trading yesterday. It opened the session at $0.0685 but failed to maintain its price and plunged towards the bottom of the chart. In fact, the ticker actually dropped down to a new 52-week low of $0.055. A couple of hours before the closing bell however MCIG managed to bounce and surging upwards finished the session with a gain of nearly 10% at $0.075.The traded volume for the session of over 5.1 million shares is the biggest one registered by the company since early-March.

The stock may have avoided wiping more of its value but its performance was far from encouraging. It remains to be seen if the support for the stock displayed at the end of session will carry over to today’s trading. The chart of the company shows that their share price has been declining for quite some time and investors who bought in at the previous price ranges may have suffered tremendous losses. Compared to its high of around $0.20 posted in mid-January MCIG is now over 60% lower. If you go further back the chart the picture gets even worse – in March 2014 the stock spiked over 90 cents per share losing over 92% of its price since then.

The financial results of the company are not that impressive either. The quarterly report for the period ending January 31 revealed that three months ago MCIG had:

• $200 thousand cash
• $771 thousand total current assets
• $13 783 total liabilities
• $88 thousand revenues
• $743 thousand net loss

Compared to the previous quarter the amount of the liabilities was reduced significantly but unfortunately that is not enough to offset the rest of the numbers. For the quarter ending January 31, 2014, MCIG reported a positive bottom line of $2200 which may not be that impressive but is still vastly better than a net loss of over $700 thousand. Some might say that for the nine-month period the generated revenue grew by more than four times. Although that may be true the net loss grew at an even faster rate – from $25 thousand to over $2.5 million. Even quarter-over-quarter MCIG’s results are deteriorating with the $88 thousand in revenues reported for the third quarter of their current fiscal year representing a decline of nearly 50% compared to the $160 thousand reported for the previous quarter.

Trading at its current near-record lows MCIG might attempt to bounce up the chart. The last press release published by the company is nearly a month old so a new PR could also influence the direction of the ticker positively. Without some sings of serious progress however the stock will remain an extremely risky choice. 

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