mCig, Inc. (OTCBB:MCIG) Deepens Its Losses – HotStocked

3MCIGchart1.pngThe week is turning out great for the stock of the producer of electronic vaporizers and e-cigarettes mCig, Inc. (OTCBB:MCIG, MCIG message board). After yesterday’s trading was done the company found itself another 7% lower at $0.42. Traded volume nearly doubled the amount from the previous session standing at close to 1.7 million shares. For the last twelve sessions MCIG has managed to close in the green only 5 times. 

Despite the negative chart performance of the stock the company has been able to post quite a few positive developments with their business. On April 9 they announced the record sale of $45 thousand worth of mCig products for a single day. In the same PR the company also informed investors that they have received the CE mark which enables them to market their e-cigs in the European Union. Although this may not actually have any short-term effect it was still a significant milestone for the company. 

Last month they also launched the Vitacig, a rather unique product that contains vitamins and flavours without any nicotine or marijuana extracts. The company is going to spin-off the subsidiary that produces the Vitacig and is moving along its plans for a dividend to be distributed among its shareholders.

In addition to having a real product and business MCIG’s financial state puts than ahead of the majority of pennystocks. The company finished the quarter ending January 31 with:

• Cash – $37 thousand
• Total Current assets – $91 thousand
• Total current liabilities – $22 thousand
• Quarterly revenues – $85 thousand
• Quarterly net income – $10 thousand

Not only is debt kept at minimal levels but MCIG were actually able to achieve a positive bottom line. The problem is that the current valuations of the company may be too much for them to support. Even after the recent corrections the company has a market cap of more than $113 million when their total assets sit at around $1.3 million. 

Another red flag are the 23 million preferred shares that were issued to the CEO of the company back in September. The terms of the agreement were recently amended allowing the CEO to start converting its shares and increasing the possibility of 7VAPEchart.pngsevere dilution of the common stock. 
The whole sector of marijuana vaporizers has been hit hard lately and most of the companies in it are displaying the same negative chart patterns. Vapor Group, Inc. (OTCMKTS:VPOR) dropped below $0.10 per share and are currently trading at $0.083. But the stock that lost the most must be Vape Holdings, Inc. (OTCMKTS:VAPE). In mid-March the company was sitting above 35 dollars per share while after yesterday’s session they have once again fallen below $3. In early trading today VAPE are down by another 12% at $2.67.

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