Earlier this week we saw a huge jump in share price for one of the top marijuana related penny stocks, Hemp Inc. (HEMP) after it gained support off of North Carolina passing new laws to allow for CBD/Hemp oil in the company’s home facility state. No such luck has made its way to the granddaddy of marijuana stocks, Medical Marijuana, Inc. (OTC Pink: MJNA), who’s shares tumbled to lower lows on Wednesday, their lowest in almost 3 years, despite their involvement in the same product line. The bottoming out of MJNA stock surprisingly came on the day when the company announced it entered into a final global settlement of all litigation with CannaVest Corp (CANV) who is due to receive $750,000 over a 6 month period that “won’t” have to come from MM’s pocket.
The news issued yesterday stated that Medical Marijuana had now “legally” secured its ownership of all intellectual property and branding related to Real Scientific Hemp Oil™ and Cannabis Beauty Defined™. A deal like that should be bullish and not bull$hit, but MJNA alerts were going off during the session for all of those who were sitting there waiting for the share price to break below .05.
The news wasn’t so much a catalyst for CANV either that’s seen its share price drop from above $4 to below $1, despite having some serious cash in the bank and money coming in the door ($2.3 million in cash and revenues of $10.19 million). Shares of CANV stock rose 11% to 0.888 which is still a far cry from their $7.59 52Wk high.
One thing about Medical Marijuana Inc. is that they haven’t been shy about getting news out in an effort to keep traders aware that the ticker exists. With virtually a minimum of one press release a week, shares of MJNA stock have been able to bolster one significant run this year, back in mid-May, when shares ran from .06 to almost .12 which began after the Company released their 2014 Annual Report and Shareholder Letter which highlighted that sales grew 280% compared to the year prior.
Shares of MJNA stock peaked when the company announced that HempMeds Brasil™, a corporate affiliated company, won approval in Brazil (Brasil if you’re cliquey) for their blu-blu, blah-blah hemp oil. News of the nature of a government approval on the heels of a nearly tripling of corporate revenues would not be followed by a descent in share price unless the 5 billion authorized share limit has reached, or surpassed, the midway point.
With MJNA shares having broken past a monumental technical point and not seeing much love at all this summer other than the 3 day Brazilian affair it had with the bull in May, is it time to set those alerts to .04, a price not seen since August, 2012? Considering the lack of love for the ticker, maybe it would be better to wait for that to be tested before trying to spark up a fat gain on it.
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