Dragni Dragnev

mCig Inc (OTCMKTS:MCIG)'s Recovery Didn't Last

by Dragni Dragnev May 19, 2015

mCig Inc (OTCMKTS:MCIG, MCIG message board) experienced a dead cat bounce on Friday, but yesterday's red session clearly showed that the ticker currently doesn't have what it takes to retain its position on the charts.

As we've discussed before, MCIG doesn't really have a lot to its name, in spite of its boastful attitude. Truth be told, even MCIG's announcement of “the completion of the best quarter in company history which ended April 30, 2015” does not mean much, when the company's other filings are as miserable as:

  • Cash - $200 thousand
  • Total current assets - $771 thousand
  • Total liabilities - $13 thousand
  • Quarterly revenues - $88 thousand
  • Quarterly net loss - $743 thousand

Unfortunately for MCIG's loyal supporters and anyone else rooting for the company's success, a bit of due diligence reveals that MCIG's talk is big, but its achievements are lacking.

This shouldn't really be all that surprising, seeing as it fancies itself a marijuana stock and is often traded as such. This classification alone affords explosions of hype-fueled volatility, but as we all know, hype jumps don't last and often end in disastrous crashes.

By all accounts, yesterday was just another step of one such perilous slide for MCIG and its investors. Said crash will most likely continue in the foreseeable future, unless the company manages to do something dramatic to turn it around.

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