Megola Inc (OTCMKTS:MGON) Goes Berserk
It's no secret that penny stock investors often like to play with fire. With Megola Inc (OTCMKTS:MGON, MGON message board), however, they might be pushing their luck a little bit. At least that's what a few minutes' worth of research suggests.
Yesterday, MGON went up by a whopping 288% and it hit a high of almost $0.007 for the first time since December 2014. At the same time, investors poured more than $370 thousand into the stock.
In other words, they poured $370 thousand into a company that had NO employees in July 2014. There are more things that MGON didn't have according to the latest financial statement.
On October 31, the company had NO cash, NO current assets, NO liabilities, and NO revenues. MGON didn't even have operating expenses during the reported quarter which suggests that it had NO operations.
Investors poured $370 thousand into a company that hasn't issued any press releases for the last ten months. Over the same period, the stock managed to drop from a 52-week high of $0.19 all the way to a bottom of $0.0009 (that's 99.5% in losses).
The financial report says that the company has a total of three websites. None of them seem to be working at the moment. The one that belongs to MedCan (MGON's subsidiary dealing in the medical marijuana industry) says that it 'will be back up and running in no time.' According to the whois internet search engines, it's been saying the same thing since November 2014.
All in all, saying that MGON is in a pretty poor state would be the understatement of the year. Yet, as we mentioned already, people are scrambling for shares and thanks to them, the stock is soaring.
Unfortunately, this is all due to hype and nothing more. The message boards are buzzing with activity and, as is often the case in Sub-Pennyland, there are plenty of people who will assure you that they've spoken to the management team and that the future is brighter than ever. Those people say that Health Canada is about to inspect MGON's growing facility and give the company a license (Creative Edge Nutrition Inc (OTCMKTS:FITX) shareholders are probably weeping at the moment).
It's interesting how members of the management team have no problems telling random people from the message boards that the future is bright, but they don't seem too keen on announcing the information in an official press release. It's also interesting how everybody is talking about the blue sky ahead while no one seems interested in the problems that we listed above.
Despite some people's peculiar attitude towards the stock and despite the fact that at this point, everything is in the realms of rumors and speculation, MGON is surging upwards. But can it sustain the current levels?
Well, Medican Enterprises Inc (OTCMKTS:MDCN) is another stock that's running solely on hype and discussion board excitement and it must be said that it has put up quite a show over the last few days. We all know, however, that without anything concrete, it will have some serious problems withstanding the enormous pressure.
The same, as you might have guessed already, goes for MGON.
