Megola Inc (OTCMKTS:MGON) one of the OTC traded firms surprised the investors by posting gains of more than 72% in last trading session. There is no doubt that people who invest in OTC stocks are fond of taking risks. However, it appears the people are taking much higher risks in case of Megola. They are investing in a company that has several red flags associated with it.
Megola stock price are witnessing a roller-coaster ride from past few days. On Wednesday’s trading session, the stock price plunged close to 26% to end the day at $0.00370. Most of the people believed that the decline was the first indication that the euphoria witnessed in past few trading sessions has finally come to an end. The share price of Megola posted gains of more than 16% on Monday’s trading session. However, the company’s share price surprised the investors and posted gains of more than 70% in last trading session. As per the report, the company said that it had zero employees in July 2014.
The financial issues
As per the latest financial report, Megola Inc (OTCMKTS:MGON) reported various ‘NO’ balance sheet. The financials indicate that the company possesses no assets and no liabilities, no revenue and no cash. In addition, the operating expenses were also zero posing a question what the company was doing in that quarter.
The company has not issued any update or press release from several months. It can be stated as the prime reason behind the sharp decline of Megola stock price. In past ten months or so, the share prices plunged from $0.19 to $0.0009, eliminating 99.5% of the total value. Megola has in total three websites, but the problem is out of the three website there is not a single website that is functional. They state the message that they would be operational soon.