One stock that continues to present analytical challenges is surely Medical Marijuana Inc (OTCMKTS:MJNA). Shares of the stock continue to struggle mightily to gain traction despite claims by the company to be accomplishing so much with strong reported and claimed revenues. Yet the stock continues to massively underperform the CBD phenomenon. Either something here is very, very, very wrong, or this is a value opportunity. We’ll leave it up to you to decide.
To add some further color, the company just announced that they have welcomed former Miami Dolphins Linebacker Bruce Bannon as their newest spokesperson for its subsidiary Kannaway to help spread awareness on the benefits of hemp cannabidiol (CBD) for athletes and active consumers. “We’re thrilled that Bruce is taking our Pure Gold and Premium Full Spectrum CBD products and we hope that he continues to find success using them,” said Kannaway CEO Blake Schroeder. “Athletes such as Bruce help us educate consumers and make them feel more empowered to incorporate CBD into their lives.”
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 that they have welcomed former Miami Dolphins Linebacker Bruce Bannon as their newest spokesperson for its subsidiary Kannaway to help spread awareness on the benefits of hemp cannabidiol (CBD) for athletes and active consumers.
This news, while obviously helpful, figures into a tape that has been defined by distribution of late, with shares of MJNA taking a hit in recent action, down about -7% over the past week. It should be an interesting battle in terms of how the stock reacts in coming days. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -15%.
In addition, the listing has seen interest climb, with an increase in recent trading volume of 14% beyond what we have been seeing over the larger time frame.
“After playing football all your life, no matter who you are, you get beat up and have injuries. Though I’ve never had a serious injury playing football, the many hits that I took while playing have taken a real toll on my body as I’ve gotten older,” said Kannaway® spokesperson Bruce Bannon. “In a matter of days after starting to take Kannaway’s CBD, I was feeling better. At first I was worried it was just in my head but after two weeks I began hiking and working out regularly again and would like to keep taking these products to stay as active as I once was.”
At this time, carrying a capital value in the market of $244.75M, MJNA has a significant war chest ($4.8M) of cash on the books, which compares with 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.