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By Boyan Angelov
Nov 27, 2014

mCig, Inc. (MCIG) Wipes Out All Its Gains

mCig, Inc. (MCIG) got back on the investor radar on Tuesday after the company announced that its VitaCig, Inc. dividend and spinoff had been approved by the Financial Industry Regulatory Authority (FINRA). On a volume of 4,143,181 shares exchanging ownership, MCIG stock went up by 16.82% in price, which was the first improvement of over 10% since early October.mCig, Inc. stock chart

Yesterday, however, the penny stock went all the way back down to the $0.22 mark where it was at before the climb from Tuesday. While there was still a higher trade of MCIG stock, the company's inability to sustain the higher demand is by no means a good sign.

As there has not been much news on the company's developmental plans, a look into MCIG's latest 10-Q for the period ended July 31, 2014 would be of help to set a better long term outlook on its potential:

  • Cash: $225.9 thousand
  • Total current assets: $2.1 million
  • Total current liabilities: $6.9 thousand
  • Revenue: $195.5 thousand
  • Net loss: $1 million

The venture has improved its asset basis, while reducing its liabilities to a minimum. In the first fiscal quarter, MCIG has managed to make a decent amount in sales, which was significantly better than the scarce amount at the end of the previous fiscal year. Despite these improvements, MCIG still ended the period at a high net loss, incurring nearly a million in the first fiscal quarter, after managing to reduce the amount to a minimum by the end of the previous period.

To settle payments for services received, the company determined a total of $128,071 due in stock payable of July 31. A positive event for the company was the decision of its CEO Mr. Paul Rosenberg to cancel 5,040,658 shares of common stock from his personnel holdings. MCIG has not entered into financing agreements throughout the first fiscal quarter.

MCIGOn the other side of the fence, the company has not been very active in its venture initiatives as of late. MCIG has been focusing most of its efforts on VitaCig, Inc. for a while. Thus far, the company has not received much reaction from the news around this brand. The last update about another product line the company gave dated way back to October 6 when MCIG unveiled its Vapolution 3.0 vaporizer, which was not met with enthusiasm, either.

It remains to be seen if the company can keep the interest going in the long run. In the meantime, doing due diligence on MCIG before investing in the company's stock may be the best call.

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