mCig, Inc. (OTCMKTS:MCIG) Steps On The Road To Recovery
mCig, Inc. (OTCMKTS:MCIG) fell just 6.79% when the sector-wide crash in the wake of the elections took the whole marijuana branch down, but when comparing charts it turns out that it is one of the least affected pot-stocks out there. In fact, it looks like the ticker is already on the road to recovery, with its stock regaining almost all it had lost yesterday and moving slowly but steadily further up the charts today.
It is currently unclear whether this reversal of fortune was made possible by MCIG‘s announcement that the spinoff of VitaCig Inc. that the company filed for with the SEC on April 21, 2014 has finally been approved. However, since this state of developments has been long in the making and not really harmful or beneficial to investors that appears unlikely. So what did cause MCIG to recover so quickly, while other marijuana companies, such as Growblox Sciences Inc. (OTCMKTS:GBLX) continued their crash throughout that same session?
Well, for starters, MCIG isn’t what you’d call a “true” pot-stock, for a couple of reasons. One of the said reasons is that the company is currently engaged in the manufacture and distribution of e-cigs, which were popular way before the marijuana boom, and will probably still be sought after when it inevitably subsides once more. True, the MCIG‘s product was at some point advertised as an e-cig that could be used for marijuana or other herbs, but unlike many other companies in the marijuana branch, MCIG‘s business model will probably not be utterly crushed by something like the Grand Old Party winning the midterm elections.
And second, unlike most other “pot stocks”, MCIG is already an operational company, it is making revenues and although it is not yet profitable at least it doesn’t destroy investor value with toxic funding, dilution or crippling debt.