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By Boyan Angelov
Sep 01, 2014

MultiCell Technologies, Inc. (MCET) Loses Momentum After Recent Climb

MCET_chart.pngMultiCell Technologies, Inc. (MCET) spiked last Monday after a press release came out, announcing the company had been granted a U.S. patent covering novel drug compositions and platform technologies used for fighting virus infection and cancer. MCET climbed by 57% in price on a 750 thousand share volume at a $846,1 thousand trade value. These were the highest numbers for the company in over five months and the first significant increase since late March.

The next day, however, the ticker suffered a sharp correction which brought the penny stock back to the triple zero price levels. By the end of the week, MCET had lost all of its price gains and was back to trading at the previous lower volumes. Looking at the company's recent history, there is not much to keep the interest going. After the second quarterly period ended May 31, 2014, there has been no noteworthy improvement for MCET financially:

  • Cash: $170,8 thousand
  • Total current assets: $182,2 thousand
  • Total current liabilities: $1,2 million
  • Revenue: $12,3 thousand
  • Net loss: $388,8 thousand

The only significant change in MCET's financials is the increased net loss which is not a good sign. Other than that, the company has kept the levels of its cash and assets low, while maintaining a much higher amount of liabilities. The company has not been able to improve its sales, as its revenues remain scarce.

The recent news around MCET may be a potential breakthrough for the company, but as with all medical means of treatment, the time to test and establish a product ranges from months to years. There will be a long time span before the efficacy of the drug is evaluated and there is no guarantee on whether or not it will prove to be successful.

MCET_logo.jpgMomentary increases tend to happen in low value penny stocks every now and then. The ability to keep the acquired attention is what separates the successful stocks from the rest. At this point in time, there is no reason to believe that MCET is a future front runner or that last week was just an example of a dead cat bounce.

Time will tell if MCET has the potential to further develop its craft and establish positions on the market. Until then, doing due diligence on any stock that has gone up before investing is a good call.

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