MEDL Mobile Holdings, Inc. (OTC:MEDL) gained 10% in value on Tuesday after the emerging developer of mobile software applications revealed its intention to launch ‘The Fatty’, or what has been branded as ‘the very first official Cheech and Chong mobile app on Apr. 20. The news was immediately backed by a full-blown two-day promotion evaluated at $60 thousand.
Coming in at $1.02 per share, MEDL edged up 9.68% shifting a total turnover of approx 50 thousand, down 32% from the daily average trading volume. Thus, the company’s shares re-entered dollarland after having submerged to $0.93 at the beginning of the trading week.
Two hours till the end of yesterday’s session, MEDL had only added $0.02, or 1.96% to its value. While the promotion has indeed managed to raise awareness about MEDL among market players (as indicated by the 72,000+ shares that have already changed hands), its impact on MEDL’s market value appears to be slim to none. In fact, MEDL closed trade by only gaining $0.01, or 0.98%, in value.
MEDL’s latest quarterly report covering the period ended Dec. 31, 2011 reveals that its net working capital has shrunk to $1.28 million, which is considerably lower in comparison with the Q2 and Q3 figures. What is more, its total revenue has also dwindled to $618K as opposed to $705K and $905K incurred in Q3 and Q2, respectively. Long story short, MEDL’s revenue tends to decrease on a quarterly basis. As far as the company’s net result is concerned, the net loss of $1.27 million incurred in the last quarter of 2011 is more than twice as big as the aggregate net loss for the preceding two quarterly periods.
Although the promotional campaign mentioned above will also cover todays session, it will hardly give MEDL shares the boost its initiators expect. Indeed, the company has positioned itself in a high-potential business segment, yet it is nowhere near where it could be.
