Of course, the promoters are not looking for values above $1,70 per share that were typical for MCGI latest promotional campaign from May last year. The current trading volumes are also incomparably low with 7,400 shares traded on Friday, yet the new promotional e-mails could make the illiquid stock move even higher up in price today. The promoter mentions no compensation for including MCGI in the newsletter, but is trying instead to convince traders that Friday’s news is brand new and undiscovered and that the low trading volumes of the stock do not suggest a massive sell-off.
A massive sell-of was probably not expected last year as well, but it did happen and since then MCGI is showing no signs of recovery. On Friday the share price jumped 25% and the stock closed at exactly $0.25, which seems to have been inspired by the latest press release from the company. It was an overview of Nurses Lounge, an online professional network acquired by MCGI in November last year.
MedCareers Group financial statements are yet to show if the Internet users have appreciated the benefits of that platform. The company’s latest report is for the three and nine months ended October 31, 2010 and does not sound promising in that regard, although showing some operational activity. The acquired in August 2010 Workabroad.com has brought $4,460 in revenues within the three-month period, but the operational costs exceeded $14,000.
Apart from that, the company had about $25,500 in cash, not sufficient to cover the current liabilities, not to speak about further expansion. Finally, the management admits that MCGI further existence is dependent again on proceeds from stock sales or from a debt financing.
