MCIG stock delisted to OTC Pink and CEO Paul Rosenburg is taking some heat

MCIG stock 9/4/14

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 Ihub shortorlong

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:

MCIG Ihub hobowilly

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.

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MCIG Stock Painted Red. Let’s Bring Out That VitaCig Spin-Off Already!

Mcig 2.0 and VitaCig

Oh that MCIG! They can put on quite a show and draw a crowd.

Securing brand ambassadors like rapper Rick Ross, entertainer and “Jackass” founder, Bam Margera, and Jonathan Cheban of “Keeping Up With The Kardashians” has brought a lot of awareness to their up and coming brand.

Rising in popularity, we not only see the mCig, but also a smoke and nicotine-free product with nothing but water and vitamins: VitaCig.

They even have plans to enter the new alcohol vaporization market with LiqCig, which will be 100% owned by mCig, Inc.  Put into the absolute simplest of terms, there’s a lot you can like about owning MCIG stock long term.

But I sure do NOT like the recent downturn of the stock price…..

MCIG Stock Double Bottom August 27th 2014

Patterns count, whether you love or hate all the technical analysis mumbo jumbo, and this recent pattern is disconcerting.

MCIG stock has wavered in the mid 40 cents range for many months, and ascended as high as 53 cents during that same time.

A technical analyst would probably draw attention to the double bottom formation, but here’s the problem with viewing that signal as a golden opportunity to buy…..

MCIG just recently fell apart to the mid 30‘s, and the support level at 40 cents that previously held strong like an ancient Spartan warrior defending his homeland, collapsed like a tower of cards.

So is this just temporary frustration being expressed by current MCIG investors?  Or is this a good time to buy on the cheap side?

I think a lot of current MCIG stock enthusiasts have been holding and awaiting news that the company is going to move forward with the VitaCig spin-off, which will provide a 1:1 VitaCig stock dividend to MCIG owners.

This process continues to be delayed and holders seem to be growing tired.

The volume being traded has been strikingly low.  All it takes is for a small group of investors to say “I’ve had it!  I’m sick of waiting for this VitaCig spin-off and I’m dumping this!” to bring about such a rapid decline in the share price with these terrible volume numbers.

Considering its low revenue numbers and the sheer amount of e-cig competition emerging, a negative reaction is understandable.  MCIG was previously trading at a valuation well over $100 million.

MCIG is diversified, able to appeal to the younger generations, and seems intent on gobbling up market share through very flashy exposure.  But the valuation may be getting ahead of itself.  There’s a lot of revenue to be gained before I can feel completely at ease with a triple digit million valuation.

That’s why it’s so hard to determine if this 30 cent dance is a hiccup from impatience and low volume, or if it’s a necessary correction for a valuation that crept up way too high in MCIG’s infancy.

Disclaimer:  I am currently long MCIG.  And NO, I have not sold following the breakdown of the 40 cent levels, but I am accepting extra risk as a long-term holder.

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mCig (MCIG) drives another endorsement, claims 10-K will show 1,100% increase in revenue

Mcig 2.0 and VitaCig

10-k will be released on Friday. The Company expects to report approximately $543,000 in company-wide pro-forma* revenue. This figure includes pro-forma revenue for mCig, Inc., VitaCig, Inc., and Vapolution, Inc. for the year ended April 30, 2014**. This compares with approximately $50,000 in the prior-year ended April 30, 2013 and represents an approximate 1,100% increase. The Company expects to report profitable Adjusted Earnings* for the year ended April 30, 2014. The Company expects to report approximately $353,000 in company-wide pro-forma* gross profit for the year ended April 30, 2014.

This reflects a gross profit margin of approximately 65%. These financial results reflect only 15 days of sales for VitaCig (launched on April 15, 2014) and only 103 days for mCig inclusive of days where the company ran out of inventory.

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