Medical Marijuana Inc (OTCMKTS:MJNA) is a stock that presents somewhat of a mystery right now. MJNA has recently come out with what should be very positive catalysts, and yet the stock’s tape continues to feel like it’s under a concrete-soaked blanket – ie, there’s just no upside. And the dime level continues to feel vulnerable. But let’s take a look at the recent catalysts: In just the last two days, MJNA has made two key announcements that seem to imply a direct, if minor, impact on sales.
First, MJNA came out with news that “the State of Mexico” – which is a small but populous area in the country of Mexico – has purchased a little of its CBD product for 11 people. While the actual volume of sales here can’t be more than a rounding error in real money for MJNA, the allure of the announcement is self-evident in terms of validation of the company’s CBD segment. Second, the company announced the next day that its subsidiary HempMeds Brasil held a successful, sold-out Doctor Symposium in Sao Paulo, Brazil on August 15, with 50 doctors in attendance. This suggests further in-roads into the Brazilian market, which poses clear positives. However, neither of these announcements has managed to give bulls a breather from the downward pressure on the offer.
Medical Marijuana Inc (OTCMKTS:MJNA) bills itself as an investment holding company that operates in the medical marijuana and industrial hemp markets. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high-value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries.
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Its subsidiary, Kannaway, LLC, is a network sales and marketing company specializing in the sales and marketing of hemp-based botanical products. Kannaway currently hosts weekly online sales meetings and conferences across the United States, offering unique insight and opportunity to sales professionals who are desirous of becoming successful leaders in the sale and marketing of hemp-based botanical products.
MJNA licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry. It engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products.
In addition, MJNA provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics; and consulting and securities services to businesses and individuals in the legal cannabis industry. Further, it focuses on the treatment of pain and other medical disorders with the application of chewing gum-based cannabis/cannabinoid medical products.sportswear and more.”
As discussed above, despite seemingly positive news flow, recent action has seen roughly lateral movement for the stock over the past week, and that pattern has typified the stock’s movement over months as it crawls along super-critical support at the dime level. Market participants may want to pay attention to this stock. MJNA has a track record that includes a number of dramatic bounces.
That said, our own view contends that we will likely eventually see this support level broken hard to the down side. Note that we have been seeing interest climb in recent weeks, with an increase in recent trading volume of 8% over what the stock has registered over the longer term.
We continue to be skeptics of this stock, despite the company’s constant PR work pushing its bullish message:
“Our Doctor’s Symposium in Sao Paulo was a major success and we were encouraged to witness the convergence of doctors interested in learning more about the therapeutic benefits of CBD, as well as families sharing their stories about how our products have helped change their children’s lives,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “These types of events are critical for improving the treatment options for numerous medical indications including autism, Parkinson’s, epilepsy, cancer, and more.”
“We want to congratulate the State of Mexico’s government for this historic purchase of our RSHO CBD products to help improve the lives of its citizens,” said Medical Marijuana, Inc. Dr. Stuart Titus. “We are a Company of firsts, including having the first and only federally legal CBD product in Mexico and we are excited about this new historic milestone of being the first Company that the Government of Mexico has contracted to purchase and pay for cannabinoid CBD products to benefit its citizens.”
Now commanding a market cap of $315.64M, MJNA reports only unaudited financial data and sits on the pink sheets, so all data has to be taken with a major grain of salt. That said, the company claims that it has a stash ($1.2M) of cash on the books, which must be weighed relative to about $802K in total current liabilities. MJNA also claims to have pulled in trailing 12-month revenues of $10.1M. In addition, the claim is that it is seeing major top line growth, with y/y quarterly revenues growing at 135.2%. We will update the story again soon as developments transpire. For continuing coverage on shares of $MJNA stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $MJNA, either long or short, and we have not been compensated for this article.