MedGen Inc (MDIN)

[Jammin1]

erelas, the revenue was deferred, due to distribution deals, and not real revenue of product selling on shelves. The product still has yet to hit those shelves. The real sales were only about $240k during 2013, almost all of that in the last 2 quarters, its first year back in business after a quiet period.

Revenue at a rate of $480k per year (about 240k in last 2 qtrs) is about .0007 / share, right where the price is now, meaning our P/S is about 1, which is a fairly normal valuation.

Some say that's a great start from nothing, and are optimistic, but others point out that PR's and tweets implied a lot more revenue, on multiple occasions, so they've been deceptive.

Right now they need to regain the trust of a lot of people. The attorney's letter is step 1. Getting drugstore.com is also a good step, but comes many months after the CEO said it would happen. It's up to you to determine whether the CEO was intentionally deceptive, or just over-exuberant and overly optimistic.