Previously, I’ve been a big fan of one of the most popular marijuana stocks, mCig Inc. (OTC: MCIG) and it’s CEO, Paul Rosenberg.
But NOT today….. In fact, not even this week.
MCIG was recently delisted from the OTCQB to OTC Pink, which is considered the most risky tier of OTC stocks. This transition created an immediate blow to the very image of the company.
And this leaves both long term critics of MCIG stock and loyal shareholders speculating over everything from the possibility of company going out of business to being a scam.
Here’s one example that caught my eye earlier this morning on the ever-so endearing Investors Hub boards. This is especially concerning, because it goes back to issues I discussed last week about investors growing tired of waiting for the Vitacig spin-off to materialize:
MCIG Management is being called “incompetent” and “ignorant” quite openly, and it’s hard to blame investors when they watch such a rapid decline of a popular stock that’s previously enjoyed some stability (relatively speaking) in this marijuana stock sector.
Here’s yet another iHub clip that covers one of the primary reasons I shook my head with frustration when I learned about the delisting:
I do believe most investors or onlookers are going to simply see the stock listed as PINK and quickly come to the most negative conclusions without even conducting any further research. Simply put, it’s seemed to become a deadly killer of any positive MCIG investor sentiment out there.
It’s difficult to make any predictions where this stock goes in the short term. If you’re still invested in MCIG stock and wondering whether to bail or pick up more seemingly “cheap” shares, you’ll need to dig into the fundamentals of the company and pay attention to management’s attempts to rectify this blow to investor confidence.
It’s worth noting that MCIG did pay the $10,000 to be relisted to the OTCQB, but there’s still plenty of blood in the streets.
Disclaimer: I am long MCIG stock, but only a small amount. The actual value of my shares has decreased below $1,000 as of this posting.