Medefile International, Inc. (PINK:MDFI) scored a markedly higher than usual volume on yesterday's session. The stock price made a considerable spike as well and almost doubled in the last two weeks.
The stock overcame the resistance on April 1, when its announced its annual financial results. The press release stated that revenues had increased by 839% to $133 thousand but it missed to say that net loss had also increased by more than $300 thousand. The major part of the company's expenses was represented by an interest expense on notes payable.
On the other hand, the company now has a working capital of $200 thousand. However, compared with this figure the current market capitalization of $23 million looks rather distant. MDFI also has more than $1 million in administrative expenses which means revenues will have to go a long way in order to cover this financial segment.
With this mixed signals given by the company's annual report, investors will need to rely on both intuition and common sense in their investment strategy with MDFI stock. What is most important now is to estimate if the tendency of rising revenues will continue in the future and will it outpace the company's operating expenses.