Medisafe 1 Technologies Corp. (OTC:MFTH) had been trading around the $0.01 mark for a while, then it climbed up, and yesterday a promotion brought it down again on a huge volume.
The promotional campaign helped MFTH open with a gap up above $0.03 per share, but at the end of the day MFTH closed down 35.48% at $0.02. The volume of nearly 2.2 million shares was times above the average for MFTH.[BANNER]
The promotion was carried out by several newsletters. They touted MFTH to be a potentially huge bounce play based solely on the fact that it had traded around $0.40 when it entered the market, and had been at the $0.01 level for months.
The only news the company has released recently is that it had paid off some promissory notes. This in no way changes the fact that the company has limited assets and no revenue.
Additionally, MFTH filed an 8-K form on Nov. 2 which revealed that the company had issued 20 million shares to Jacob Elhadad, President of MFTH, as additional compensation due to the decline in the market price of MFTH’s stock. “The shares were sold without registration under Section 5…”
There doesn’t seem to be any logical reason for a bounce back at this point. Traders and potential investors should keep in mind that on the OTC promotions are not really a signal that a company is doing well – they are paid advertisement.
