mCig Inc (OTCMKTS:MCIG) managed to post strong gains on Friday’s and Monday’s trading session. However, the sharp decline in yesterday’s trading session indicates that there is no strong news to support the stock price at this time. There is nothing much that the company has accomplished till this time. The company announced the completion of best quarter, which loses its significance in face of dismal financial numbers.
As per the last report, mCig had cash of $200,000 and total current assets of $771,000. The net loss in quarter was $743,000 and revenue came at $88,000. The total liabilities were $13,000. The company claims to have made big achievements, but the reality is something else. It is the case with most of the marijuana stocks as they post gains on hypes, and when hype fades away the result is atrociously disastrous.
When the figures are analyzed, it is evident that mCig is generating revenues, which is a rare case with OTC firms. The revenue generation part lacks the strength as revenues declined almost 50% QOQ despite the launch of new products in the quarter. It brings attention to the latest press release, which was expected to be an update on the last quarterly report. There were lot of claims and forward-looking statements but what really was missing was a lot of digits. Paul Rosenberg, the CEO said that MCIG’s revenues are expected to be in a range of 7 to 10 million for the fiscal year without mentioning what currency was used for the projection. The announcement resulted in sharp spike which was short-lived.
In last trading session, the stock price of mCig declined more than 12% to close the trading session at $0.0650. The decline came at a share volume of 3.04 million compared to average share volume of 2.04 million.