On Friday’s trading session, the stock price of Megola Inc (OTCMKTS:MGON) shoot up more than 19% to close the trading session at $0.00430. it is one the OTC traded firms that is fetching considerable attention of investors from past few weeks. The reason is sharp gains posted by stock at good volume. The stock price lacks the support from fundamentals.
The penny stocks do witness volatile movements where they surge sharply one day and then post massive declines on the other day. However, they are backed by some sort of promotions, press releases or news. It is not the case with Megola that has got dismal financial numbers. Few weeks ago when the share price dropped more than 26%, the shareholders thought it better to liquidate their positions. It was considered as a first indication of decline. It never happened as the stock started with upward trend.
The financial numbers disclosed in the latest report highlights the dismal condition of Megola. There are many OTC traded firms that have zero revenue in their balance sheet. However, things are worse with Megola as the company not only has zero revenue but also zero cash, liabilities and assets in the book. Moreover, there are no operating expenses. Nothing can be more worrisome than the financial numbers of Megola. Even there were zero employees as reported by the company in July 2014.
The problem of nothing
Megola Inc (OTCMKTS:MGON) share price is rising even when there are so many “NOs” attached to it. It clearly calls for caution. The company didn’t even report any update or news in almost last one year. It is a terrible sign and it is suffering from the problem of nothing. Due to the underlying problems, the stock price has plunged to $0.00430 from $0.19 in past ten months.