Is Medbox (MDBX) a growth story?
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We’re looking at Medbox ( OTCMKTS:MDBX ) here. Okay, I’ll cut to the chase here; you need to sell this stock if you’re long. I could totally be wrong about this, it could go clear up to $100.00 and beyond, it’s just amazing how high this thing could go. This is not the next Twitter ( NYSE:TWTR ) though. Technically this is about as classic a reversal pattern as you could get. The only way it could be more convincing is if this was down a little bit more, and this bar was up a little bit higher. But make no mistake about it, this is a gap and crap, it’s a gap in reverse.
Look how high this thing has gone in just one, two, three, four, five six, seven, eight days, it reversed first thing this morning. Frankly, if you’re holding this stock and expect it to go higher from here, I don’t want to say you’re a dope, but I’m just going to say that you’re probably smoking something that comes out of this machine that this company makes. Look, their website makes it sound like it’s really, really cool. When you have to even go posting testimonials from your customers on your website, you’re blowing a bubble baby, that’s all. It’s a pink sheet stock; it’s a stupid stock. Back here a year ago, look where this puppy was selling, for a whopping two cents, so this is just not where you want to be.
They say that they produce or manufacture automated biometrically controlled dispensing and storage systems for medicine and merchandise. Okay, I have a gun safe that does the same thing that cost me about $80.00 or so. The only difference is this is for medicine and merchandise otherwise known as pot, and it’s got a refrigeration system in there so your pot doesn’t rot; you swipe a card and then you put your finger print on there. This is not high tech stuff, I’m sure they have things that are patented and that’s just great. Let’s look real quick at the “fundies” here, because they’re really impressive. They have $100.000 cash on hand, so do I, they have a total debt of $240,000, more than I do, their profit margin is 7.62, mine kind of dwarfs that by quite a bit. They’ve got a market cap of 870 million, so they’ve kind of got me on that, no question about it, they’ve got a revenue a 5.94, let’s say 6 million a year, I’ll admit it, that’s better than me. They have a ticker; I don’t, unless you want to call it FITZ or SMM for StockMarketMentor.com.
But the bottom line is, this is just a bubble stock, we’re all looking for the next Tesla ( NASDAQ:TSLA ), or Twitter ( NYSE:TWTR ), or whatever it is. I’m just telling you, this is not it; it’s just not it. You can look at the big percent move, big huge percent move in the down direction today. If you are long this stock thinking that this is a buying opportunity, this was your buying opportunity; it is absolutely not too late to sell. Again, I could be wrong, I’ll admit that, you go ahead and text me, or tweet me, or whatever you want to do when the stock hits a 150.00, telling me that I must’ve been smoking the stuff that I was criticizing in telling you this.
But I’m just saying, I’ve seen this before, I was trading last century when we saw this kind of stuff happen, and at some point the music stops and you would be amazed at how few chairs there are to sit down. So at 53.10, I’ll have to look tomorrow, but I’m hoping there are shares that are available to borrow, because I’ll be shorting the snot out of this thing and looking to cover it at maybe $30.00, probably $25.00, and even then only if the market is still giddy.