Hristina Beeva

MediSwipe, Inc. (OTC:MWIP) Gains on Michigan Marijuana Law Promise

by Hristina Beeva January 4, 2013
The medical marijuana business hype carried over into 2013 and boosted the stock of MediSwipe Inc. (OTC:MWIP), a company offering databases and dispensary services. The stock jumped more than 49% on Thursday, reminding of itself in the new year and the possibility that its business model may start to bring in more serious revenues. MWIP0104.png

The last time we looked at MWIP, its price had increased significantly within a few days, outside any visible paid promotions, and seemingly after a series of promising press releases. The latest significant percentage gain followed the news that the company had changed headquarters, and we are yet to see how this will affect the business materially. The offices moved to Michigan, expecting the state may be next to legalize marijuana. PHOT0104.png

However, the company still faces the challenge of limited resources and revenues:

  • $812 cash
  • $260,911 current liabilities
  • $246,859 net loss

Along with this, the website cited on the OTC Markets profile is blank and up for grabs, while the online business struggles for users. The old website is functional, though, and indeed offers complete payment service and financing solutions targeted toward the medical industry and with a special emphasis on a system to process medical marijuana disbursements.

The latest promotion in our record is from December 17th and it coincides with a marked spike in the company's graph. It's an unknown compensation promotion, probably free, and it was followed closely by a press release showing the MediSwipe company had secured a significant number of client from payment processing company 800Commerce. MediSwipe also plans to start a share dividend program, distributing pro rata 800Commerce stock to its existing shareholders, thus adding additional interest to its ticker.

The latest promoter for MWIP, Hot Shot Stocks, a pumper with a record of promotions big and small. This time, it only added a bit to the hype for MWIP, but some of its picks are more aggressively promoted tickers. Hot Shot Stocks helped the long and effective pump for Growlife, Inc. (OTC:PHOT), another microcap company trying to benefit from the newly legalized marijuana usage by offering hydroponics growing systems.

The PHOT pump offered much and the ticker still holds up well, though possibly wiping out a significant percentage of its price in regular profit-taking. The MWIP climb may offer similar surprises, so it is best to do your own estimation of acceptable risk before believing outright in the development potential of a business.

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