Megola Inc (OTCMKTS:MGON) which is one of the OTC traded stock surprised the investors by recording gains of more than 72% on Thursday’s trading session. The people who invest in the OTC stocks are well aware that risks are always high when it comes to investing in these firms. However, this time the risk is far above the justified level. The money is pouring in a company that has a number of red flags linked to it.
The roller-coaster momentum
Megola share price is witnessing volatile momentum from past few days. A couple of weeks ago, the share price dropped almost 26% to trade around $0.00370. Many investors assumed that the sharp decline was the first sign that the euphoria recorded in past few trading sessions has subsided. However, it was just an assumption as the share price resumed with its bull run in the following week. Last Monday, it posted gains of over 16%. In last trading session, MGON share price jumped 72.97% to close the day at $0.00640.
As per the last financial report, Megola Inc has various ‘NO’ listed in its balance sheet. The financial numbers indicate that the firm has no assets, no ‘liabilities’, no revenue and moreover no cash. The most striking thing is zero operating expenses. It poses a serious question as to what the firm was doing in last quarter. Also, the report indicates that there were zero employees in July 2014.
Megola Inc (OTCMKTS:MGON) has not reported any update or issued any press release from several months. The decline in share price is a result of same process. In past few months, the share price of Megola dropped from $0.19 to $0.0009. It is a sharp drop that eroded 99.5% of the total value. The company runs total three websites, but as of now not a single website is in active stage.