mCig Inc (OTCMKTS:MCIG) is a penny stock that has started to garner attention as shares bounce off recent support in the $0.20 area. The latest catalyst for MCIG is its announcement of its audited results for fiscal year 2017. Probably the most striking highlight from the report was the revenue data, with sales from continuing operations for FY2017 coming in at nearly $4.8M compared to $1.72M from the previous year, an increase of approximately 277% y/y.
“This has been a record year for mCig and its shareholders. MCIG has seen tremendous improvements in revenue, gross profits, net profits, cash position, CAGR, and shareholder value. MCIG has done this with no toxic debt. With our new and innovative solutions that are projected to have a significant impact on our future financial statements rolling out shortly, the MCIG story will continue to be exciting,” says Paul Rosenberg, the company’s Chief Executive Officer.
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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As noted above, MCIG just put out its FY 2017 audited data, showing a clear record growth in sales. Shares of the stock popped higher on the news, though the intraday pattern was a bit less encouraging, with the close coming well off the highs. In any case, the data certainly looks encouraging at first blush, with a $1,527,352 net profit, $1,539,233 EBITDA, and a $32,685 adjusted net income for the year. Given its trend, this suggests a growing business with bottom line potential.
Rosenberg went on to say, “We expect to continue to see organic and acquisition revenues to grow, strengthening the MCIG name in the cannabis industry. I encourage all our shareholders to download our Annual Report to review where we came from and see where we are headed.”
We’ve witnessed roughly flat action over the past 5 days in the stock, however, this week has started off with a pop, as suggested above, a bounce that has taken root amid largely bearish action over the larger time frame. Market participants may want to pay attention to this stock. MCIG is a stock who’s past is littered with sudden rips. Furthermore, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 6% beyond what we have been seeing over the larger time frame.
At this time, carrying a capital value in the market of $69.2M, MCIG has a reserve ($420K) of cash on the books, which stands against virtually no total current liabilities. MCIG is pulling in trailing 12-month revenues of $2.5M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 445.9%. You can bet we will update this one again as new information comes into view. For up-to-date coverage on shares of $MCIG stock, as well as our other breakout picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: We hold no position in $MCIG, either long or short, and we have not been compensated for this article.