That’s a phenomenal gain for the stock as compared to its previous market values.The pink sheets company has not released much news recently, except for the couple of positive announcements from the last few days. The latest one reported that the U.S. Border Patrol has expressed interest in AirStar Industrial Drone UAVs to assist in seeking underground tunnels around San Diego border. Along with this news, Mundus was promoted by ShamrockStocks.com, which sound like a more probable reason for the stock going immediately higher.[BANNER]
The advertising attempts for MNDP suggested that it was among the top market gainers that were worth to buy. However, the facts seem to be a bit different.
Records show that last year Mundus traded approximately 10 times higher, but since then the price has moved down. About a week ago, the stock was again promoted, though its price fell down.
According to the company’s first quarter report for this year, Mundus has around $708 thousand in assets, while its liabilities are over $1 million. By the end of this April, the company had accumulated deficit exceeding $9 million and did not have the sufficient cash on hand to cover the losses.
In its financial report, MNDP stated that its “funding for operations has been provided through sale of limited amount of shares through a regulation D offering under Rule 504, and sold shares under the “Debt in Exchange to Common Stock” Rule”. However, the company has not generated any revenues.
Further, Mundus has issued 20 million unrestricted shares, though it still works on eliminating the fund raising expenses.
Based on these results and on the fact that the duration of the recent price jump cannot be predicted, investors should be careful about the future moves of the stock.
