In month of February, Medefile International Inc (OTCMKTS:MDFI) was trading at over $1.60 per share. Yesterday, the stock declined another 31.64% down, at $0.205 per share. Volume was massive again and clocked at 680,765 shares traded.
Medefile is facing quite a rough patch lately. Its share price has witnessed a sharp beating on the charts. The company’s yearly report for FY2015 was due in this week but on Wednesday investors were given a news of late filing instead. Medefile had delayed report by another 15 days, stating that the compilation, dissemination and assessment of information required to furnish the 10-K filing has proven problematic.
Considering how much the stock has been plunging on the chart even in the absence of negative announcements, it is tough to tell whether the deferred filing contributed in yesterday’s decline. MDFI is not included in the most hyped stocks when it comes to discussion boards, and therefore it’s extremely difficult to estimate investor sentiment from latest developments.
In the last latest quarterly for the three months ended September 2015, Medefile reported $147,000 in cash. The current liabilities came at $35,000 while the net loss stood at $133,000. Medefile reported revenue of $10,000. The company has been recording average quarterly sales of just more than $10,000 for the last three quarters, with the net loss for January to September 2015 coming at $598,000.
These numbers are far from the worst what investors can find on the OTC platform, particularly among pink sheet stocks. However, they are a short of justifying Medefile’s market capitalization of mid-February, when its stock was trading at around $2 per share. The company went for its common stock reverse split in 2015, minimizing its count of outstanding shares in a reported ratio of 1-for-20. Also, it was not quick to dilute these shares after the reverse split process.