SHARE

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.

The ride

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 concerns

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.

SHARE
Previous articleCANNABIZ MOBILE, INC (OTCMKTS:LGBI) Continues With Its Downslide
Next articleHDS International Corp (OTCMKTS:HDSI) Consolidates After Strong Run
Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

LEAVE A REPLY