This week brought a 100% increase in the stock price of the technology company Mundus Group,Inc(PINK:MNDP). Following the upward movement that started on Tuesday, yesterday`s session closed at $0.0006 per share as the trading volume reached the never seen before 549 million. This booming activity on the market is in sharp contrast to the development of the stock in the past few weeks, when the price remained virtually the same. It was promotions in the last few days that got investors to act on Mundus s
tock. Naturally, as the promotion yesterday was paid by a third party it had the biggest effect. There is also a possibility that the promoting activity continues and today`s session could be another successful one for the company.
tock. Naturally, as the promotion yesterday was paid by a third party it had the biggest effect. There is also a possibility that the promoting activity continues and today`s session could be another successful one for the company.
One reason why yesterday`s promotion was so successful is the announcement it included about a patent for the company Telescoping Wing Locking System. Mundus operates in a field considered by many people to be revolutionary and the next step in the commercial travel, so it is no surprise that news like the above result in a trading frenzy.Mundus Group is a consortium of companies operating in the field of advanced aerospace technology. Simply put, the company and its subsidiaries are set to construct a vehicle much like the conventional helicopter that could replace today`s cars by being able to both fly and drive one or two passengers to their destination. One of the subsidiaries also focuses on the development of unmanned aircraft vehicles. In this aspect, the latest patent mentioned in the promotion is considered a huge step forward as the telescoping wing technology provides additional safety and stability during forward movement in air.
Yet, not all news are of positive nature. The financial reports reveal just that. Although the annual report for 2010 is not released, the ones for previous years show net losses between $1 million and $2.3 million per year. In all fairness, the numbers decrease each year, but this is by no means a sign that profits are soon to come.[BANNER]
There are two more factors that have to be considered when looking at Mundus stock. One of them is that this is a development-stage company for many years now, still struggling to develop an innovative, but also marketable product.
The other one is the development of the stock over the years. Not surprisingly, investor confidence is not at its levels of 2005 and 2006. But the difference between the stock price then and now is really staggering – $80 per share in 2006 to $0.0006 yesterday. And while the speculative trader might find recent developments on the market very appealing, the long-term investor is much more likely to pass on that stock.
All in all, the company develops a revolutionary product, but there is no time frame as to when it would be ready to hit the market, let alone whether there is a market for such products. There`s the prevailing element of uncertainty in all that lies ahead for Mundus.
