By: Dylan Sikes - AllPennyStocks.com News

Friday, September 2, 2016

Equities are trading higher after the all-important non-farm payrolls data was released. The U.S. Labor Department released the data this morning, and the all-important figure was below analyst consensus. The reason why the data is being closely watched is that it could decide whether we see a rate hike from the U.S. Federal Reserve in 2016. Last week, the Fed Chair Janet Yellen had hinted at a rate hike in 2016, given the ongoing improvement in the labor market. With the labor market data largely regarded as soft, the rhetoric of a September rate hike has been tempered. Raising interest rates after all would be negative for equities and hence the joyous stance from investors with the broad markets in rally mode. Remember that equity valuations are at record high levels. However, based on fundamentals, the current valuations are not justified and only rising based on monetary policy stimulus measures.

Even though trading activity is higher today, there are some stocks that can’t seem to get out of their own way. One such stock is mCig Inc. (OTCQB:MCIG). mCig is a Beverly Hills, California-based company engaged in the business of marketing and distributing electronic cigarettes, vaporizers and accessories under the mCig brands. The Company manufactures and retails the mCig, a loose-leaf electronic vaporizing cigarette (eCig). It also maintains an investment in Vapolution, Inc., which manufactures and retails home-use vaporizers, such as the Vapolution 2.0.

MCIG shares did get an initial pop in trading yesterday after the company announced its financial results for the fiscal year ended April 30, 2016. The company’s revenue for the fiscal year rose 238% to $1,723,241. In fiscal 2015, MCIG had reported revenue of $509,957. Gross profit for the fiscal year was $290,773, up 169% over fiscal 2015.

Paul Rosenberg, CEO at mCig, said that the company’s recent barrage of business growth has necessitated the need to effectively communicate with our shareholder base. Rosenberg further said that the company understands the importance of sharing recent events with its shareholders to ensure they have a thorough understanding of its vision and growth opportunities. The company plans to host a conference call later this month to discuss these issues. The call will be hosted by mCig’s interim CFO Mike Hawkins. Hawkins will discuss MCIG’s operations and also its first-quarter results of the new fiscal year.

The CEO is right in the need to effectively communicate with shareholders as the strong revenue figures did not equate to excitement from shareholders with the stock closing unchanged yesterday, and also being unchanged in today’s trade. In fact, shares have been in a downtrend since March of this year. While the news has been positive, the reception from shareholders has been far from that. The CEO will have to figure out where the hang-up is in his Company’s stock price before the MCIG shares can break their current downtrend.

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