Analyzing the chart performance of mCig Inc (OTCMKTS:MCIG) results in a frown on shareholders face. The share price has been declining for over a year now and has recorded substantial decline compared to where it was trading earlier in 2014.
The sharp decline doesn’t surprise much, bearing in mind momentum of other stocks of companies active in the recreational and medical cannabis sector are performing. In addition, there is another big problem of financial numbers that were contained in last quarterly report for period ended January 31, 2015.
As per the latest quarterly report, mCig reported cash of $200,000. The quarterly net loss was $747,000 and quarterly revenue was $88,000. The total liabilities came at $13,783 and current assets were $771,000.
The market is divided on the performance of mCig as one group argues that the company generates revenue, which is not evident in many other OTC firms. However, it should be noted that despite launching new products revenues have shrunk by almost 50% QOQ and the net losses have been expanding incredibly fast.
The focus shifts on latest press release, which was expected to be an update on the performance of last quarter ended April 30, 2015. There has been a lot of talking and buzz, with no actual updates till this time. Paul Rosenberg, the CEO of mCig Inc (OTCMKTS:MCIG), said that revenues can conservatively be projected to come in the 7 million to 10 million of range for the fiscal year. It is a different thing he didn’t informed about the currency used for revenue forecast.
The gains of more than 95% recorded On Thursday’s trading session came at the back of the “great wall of text” press release. Sadly, mCig retreated back in yesterday’s trading session and declined more than 18% to close the trading session at $0.0720. The decline came at a share volume of 3.04 million compared to average share volume of 1.83 million.