The Tricky Dance With Reality for Medical Marijuana Inc (OTCMKTS:MJNA)

The Tricky Dance With Reality for Medical Marijuana Inc (OTCMKTS:MJNA)

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One stock that we think continues to represent the very epitome of hype and icing-with-no-cake right now is Medical Marijuana Inc (OTCMKTS:MJNA). For a good example of what we mean, consider that this has been a publicly traded stock for more than a decade and claims to rope in tens of millions in revenues, and yet this is still a pink sheet stock with unaudited financials. There is no other company (who is not in some way clearly disreputable) that can match that set of traits.

In addition, this is a company that would put out a press release hyping the successful completion of the CEO’s bowel movement in the morning. It’s remarkable. Nothing is not “big news” for these guys. As a perfect example, consider the company’s recent messaging around the paltry and unremarkable idea that it is “recognizing its first European Brand Ambassador to reach the company’s Crown Ambassador Elite rank.” Do you care? I certainly don’t.

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.”

According to company materials, “Our mission is to be the premier cannabis and hemp industry innovators, leveraging our team of professionals to source, evaluate and purchase value-added companies and products while allowing them to keep their integrity and entrepreneurial spirit. We strive to create awareness within our industry, develop environmentally friendly, economically sustainable businesses, while increasing shareholder value.”

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As noted above, MJNA just announced the “stunning news” that someone you haven’t ever heard of has achieved something you don’t care about and something that has utterly no implications for the company’s financial future. And this is not a lone event. You get this twice a week with MJNA. That should tell you something. The stock is not being accumulated by knowledgeable insiders and “smart money”. It isn’t being blown upward by natural wind in the sails. It is being held up by great effort and a motor of investor relations as founder shares are dealt.

Period.

Recent action has seen 29% during the past month in terms of shareholder gains in the name, a rally that has pushed up against longer standing distributive pressure in the stock. What’s more, the listing has registered increased average transaction volume recently, with the past month seeing 86% above its longer-run average levels.

“Through being in the Direct Selling industry for the past few years I have discovered that having money is a good thing but helping many people who love you and work with you is a wonderful feeling,” Mojzis said. “Kannaway’s products are unique and I believe that everyone needs them. I get calls daily from people [about] how great our products are and they tell me their positive experiences with the products.”

Oh, really? Wow.

Currently trading at a market capitalization of $312.36M, MJNA has a significant war chest ($4.8M) of cash on the books, which is balanced by about $4M in total current liabilities. One should also note that debt has been growing over recent quarters. MJNA is pulling in trailing 12-month revenues of $51.6M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 116.2%. As more color becomes clear on the name, we will review the situation and update our take. 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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