A rather surprising and interesting development was announced today for a stock we wrote about a few weeks ago Medlink OTCBB MLKNA. Medlink is a company that has a $500,000 debt, no cash and has not generated one penny in revenue in years. So we have a hard time taking anything they say seriously, especially press releases that reference material events but are not accompanied by an 8-k filing we can read.
But put the business aside, just look at the chart on this stock. It looks like this stock is about to go higher regardless of how much we do not like it! We certainly arent recommending a purchase ... However if I owned it I would not sell it now. If it moves above that old high of $1.01..I wouldn't be surprised at all to see this hit $1.50 or $2.00 and fast.
That pattern that resembles a smile is one of the most bullish chart formations a stock can have.
So is this hype or should we be investing?
Here is our take on the press release
We don't like the announcement because it doesn't provide any quantitative guidance to an investor on how this can impact their business. All it says is that the two companies can market each others products, but how. What steps will Kodak take to help this company make $1 of revenue (Something Medlink has been unable to accomplish on their own).
Also their is no form 8-k filed which tells us that the event is not material, and if it is not material enough to effect the business how do we deal with the "Going Concern", Lack of Funds, expenses and all of the other challenges this business is facing.
That being said it is still Kodak they made a deal with ... so maybe there is something there we aren't seeing. I guess we need an expert to evaluate their products. We will try and follow up on this one later.
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