Has Medical Marijuana Inc (OTCMKTS:MJNA) Exhausted Its Credibility With the Market?

Has Medical Marijuana Inc (OTCMKTS:MJNA) Exhausted Its Credibility With the Market?


Medical Marijuana Inc (OTCMKTS:MJNA) just announced that both the larger Medical Marijuana Inc and its subsidiary Kannaway reportedly generated the largest-ever single-month of revenues in the company’s history in February of 2018 (data, as always, is unaudited for this company). According to the release, the company also “reached major milestones in its business operations. February 2018 revenue was more than 400% larger than February 2017 revenue and was significantly greater than January 2018 revenue — which was a record revenue month for the company. February 2018 revenue alone was greater than revenue from all of Q1 2017.”

We would note that the company did not disclose any actual numbers in this release (ie, while $5 in sales would be 400% more than $1, it would not be very impressive – hence, actual numbers are important). Very rarely would any company put out a release like this without actually naming the numbers. This is likely why – among other reasons – shares of the stock did not respond at all to a release that seems so superficially impressive. Instead, shares continue to crawl sideways along their key $0.10 historically critical anchor level.

Medical Marijuana Inc (OTCMKTS:MJNA) casts 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.

MJNA’s 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.”

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As noted above, MJNA shares continue to walk along the key dime level once again. This has become a habit for this stock. And remarkably, even news of consecutive all-time record-breaking revenue months and a month in February 2018 reportedly featuring many achievements and a 400% y/y quarterly jump in sales didn’t push shares higher or even bring in any appreciable uptick in volume.

We would suggest that this lack of enthusiasm is a clear marker that the company has thoroughly exhausted its credibility with the market. If market participants truly believed these claims, the stock would be reacting powerfully to the news. But the idea that the company is claiming this type of remarkable success and yet remains a pink sheet stock for a decade and never produces an audited financial report is a relatively absurd contradiction in terms.

Nonetheless, management continues to push forward with its chosen path.

“We’re excited to start off this year strong and have the largest revenue month ever for the second month in a row,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “As the cannabis industry continues its rapid expansion as the fastest-growing in the U.S., we aim to continue to be pioneers in the industry and offer the most high-quality products on the market.”

“Kannaway’s continued growth is exciting to be a part of,” said Kannaway CEO Blake Schroeder. “Our company has started off 2018 at an incredible pace and we expect our results to continue in March and beyond.”

Earning a current market cap value of $330.4M, MJNA has a reserve ($1.2M) of cash on the books, which is balanced by about $814K in total current liabilities. MJNA claims to be pulling in trailing 12-month revenues of $19.7M. In addition, the company also claims to be seeing major top-line growth, with y/y quarterly revenues growing at 255.6%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $MJNA stock, as well as other hot stock picks, get 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.

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