It’s time to circle back around and take another look at a stock that was the very definition of bullish momentum back in December: mCig Inc (OTCMKTS:MCIG). The stock just broke out of its recent trading range on a jump in volume and deserves a closer look given its historical potential to bite off huge chunks of chart real estate in relatively short periods when it gets above resistance levels.
The stock has been contained in an extremely tight trading range over the past 6 weeks, but popped above the monthly highs on a clear elevation in trading volume, with the action pushed by the company’s announcement that it has closed escrow on the purchase of a 2.5-acre parcel in California City, CA. MCIG’s agriculture division, with its Hemp farms in New York, will soon expand from sea-to-sea with cultivating, extracting, and distribution operations in both New York and California. According to the release, “MCIG has begun the planning of an indoor cultivation facility to produce high quality, “California-Style” cannabis products after receiving three of the seven recreational cannabis licenses granted by California City allowing cultivation, manufacturing, and distribution.”
mCig Inc (OTCMKTS:MCIG) offers electronic cigarettes and related products through its online store mcig.org, as well as through the company’s wholesale, distributor, and retail programs. It also constructs commercial and modular buildings which are aimed at the cannabis cultivation market.
According to company materials, “Headquartered in Henderson, Nevada, mCig Inc. A diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. MCIG has transitioned from a vaporizer manufacturer to industry leading large-scale, full-service cannabis cultivation construction company with its Scalable Solutions division currently operating in the rapidly expanding Nevada market. The company looks forward to growing its core competencies to service the Ancillary legal Cannabis, Hemp and CBD markets, with broader expansion to take place once federal laws change.”
The company’s subsidiary, Grow Contractors, touts itself through the following messaging: “Using modular system technology, we create a variety of environmental enclosures ranging from basic temperature and humidity control to medical grade cleanroom environments designed to produce consistent results during any stage of cannabis cultivation. Our mission is to help our clients safeguard investments and find long-term success. This is why we take pride in our ISO compliant, state of the art building components to be the base of your business.”
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The chart shows 6% during the past month in terms of shareholder gains in the listing. In addition, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 22% beyond its prior sustained average level.
MCIG CEO Paul Rosenberg stated: “We are very grateful to the City of California City for their professionalism and thorough vetting process during licensing. We want to be a flagship facility and model licensee among the other licensed producers in the city. It is our sincere objective to create jobs, give back to the community, and create healthy products that complement our current product lines and brands.”
Currently trading at a market capitalization of $97.6M, MCIG has a chunk ($680K) of cash on the books, which must be weighed relative to about $487K in total current liabilities. One should also note that debt has been growing over recent quarters. MCIG is pulling in trailing 12-month revenues of $8.5M. However, the company is seeing steep declines on the top-line on a quarterly y/y basis, with revenues falling at -42.7%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $MCIG stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MCIG, either long or short, and we have not been compensated for this article.