It is an obvious fact that penny stock shareholders often like to play with fire. However, with Megola Inc (OTCMKTS:MGON) it seems that are stretching it way beyond limit. In last trading session, the stock price surged more than 16% to close at $0.0050. The investors are getting optimistic about a company that had no employees back in July 2014.
The problem of NO
As per the last financial report, Megola had no current assets, no revenue, no liabilities and no cash. It didn’t even report any operating expenses which indicate that there are no operations. The investors are putting in their money into a company that has not released any press release in past ten months. During the same period, the stock prices of MGON declined from a 52-week high of $0.19 to $0.0009. The stock eroded 99.5% of the total value.
As per the last financial report, Megola has three websites, and not a single website seems to be operational at the moment. The website operated by the company’s subsidiary MedCan has a statement stating it will be back up and operating in no time. The status has been there on the website since November 2014. Over all, the company seems to be in dismal state.
The strong movement in Megola stock price is due to hype and nothing beyond that. There are a number of people who claim that they have a word with a management team and things will improve in near future. They even stated that Health Canada will inspect the company’s cultivation facility and provide it with a license. All the messages are posted on message board with no official confirmation from the company. It is important to mention that even Creative Edge Nutrition Inc (OTCMKTS:FITX) failed to get a license from Health Canada.