Medical Connections Holdings Inc (OTC:MCTH) has been progressing up for almost a week already. The up move started last MCTH_chart.pngFriday and yesterday the stock soared the next 8.70% on the market on a traded volume of approximately 250 thousand shares for the day.

The most disturbing fact here is that Medical Connections has not released any news about its business since mid-November when the company reported its financials. Then, a couple of days ago more news by MCTH came up, stating that the company’s annual revenue has increased by 27% compared to 2009 and by 47% when comparing the fourth quarter 2010 to the fourth quarter 2009. Mr. Jeff Rosenfeld, CEO of MCTH, stated that the company is “pleased to see the revenue growth for 2010, but still have much to accomplish”, expecting higher profits from both organic and acquisition sources this year.[BANNER]

MedicalConnections_logo.pngThis news additionally strengthened the market position of MCTH and it continued to climb up. Apart from the positive projections, some analysts pointed out the stock price was increasing to 10% daily and stated it could move up by even 50%. These claims ensured a stronger support to MCTH and fueled up the stock price. However, its too soon for any final conclusions as they can be based only on optimistic projections.

Medical Connections, Inc. is a national provider of medical recruitment and staffing services. Last September the company used to trade about 50% higher than presently, though since then the stock price has moved down. According to its quarterly report, the revenues of MCTH did increase, however, its accumulated deficit reached approximately $40 million. Besides, the company still has liabilities to pay and a huge net loss to cover.

As stated in its financial report, Medical Connections “has sustained operating losses and its revenue stream is not sufficient to fund expenses at this time”. MCTH has issued stocks to fund its operations, thus its continued existence is dependent upon the ability to generate sufficient cash flows from equity financing and product revenues. These factors raise substantial doubt about the company’s future, despite the hopes that the optimistic projections might come true.