Replies to post #38825 on Megola Inc (MGON)

[otcmonkey]

Asinine.. probably just risk outpacing reward here.

Historical distrust might necesitate proving out the partnership through the quarterly reporting of revenue. Going to be a long year of waiting.

[stervc]

Fullpower7, with this MGON thought...

I respectfully 100% disagree. If what you stated were true, the entire market would have shut down or no stocks within the market would have released news on that day. Every stock within the market would have closed down and red for the day. Such was not the case.

In my opinion, the market didn't fully acknowledge the news because it lacked certain details. It was very clear when first mentioned in tweets as if the $10 million was an annual amount. Then the PR came out and suggested that the $10 million was to be broken up over 5 years which would equate to $2 million per year. That's a difference.

Something else important that they left out was the amount of Net Income, if any, that would result from that deal.

For some examples...

If the $2 million per year was going to bring in $500,000 Net Income, that would be huge! Or, if the $2 million per year was going to bring in $0 Net Income or even a loss, that would not be huge and really wouldn't be good.

However, we don't have a clue what that amount is for Net Income, or even if it exists, because the company never thought to tell us. The thought within the market is that when a company doesn't mention that they have Net Income, it's usually because they don't have it to mention. If they do have have Net Income, then it was a huge mistake not mentioning it because obtaining an EPS (Earnings Per Share) is the primary reason for their operational existence to confirm the proper growth of the stock.

At the very least, the deal is a start in the right direction.

v/r
Sterling