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Sean Nolan
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Sean Nolan is a freelance writer, finance major, and entrepreneur. Tech, Energy, and Pharmaceutical stocks are his primary focus and what he mainly invests in. By examining companies financials and future actions Sean has been successful over his career in finding undervalued companies. Sean... More
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  • Do Not Pay Attention To The Short-Term Volatility Of Medical Marijuana Inc.

    The future for Medical Marijuana Inc. (OTCPK:MJNA) and the rest of the Marijuana industry looks promising. Watching MJNA's daily stock shifts can be painful, but like the saying goes, no pain no gain. Attempting to make money off the short-term spikes can leave you wanting to tear your hair out, luckily there is an alternative, go long! Throughout this article, I will argue as to why going long on MJNA is the right move.

    When looking at MJNA, there are a few factors that must be taken into account, such as that this company is a penny stock still in its infancy. Investing in this company or any other penny stock is a gamble where all you can lose is what you put in. All you can make though depends on patience and timing. At this point in time, MJNA is a speculative buy. This means that there is a high amount of risk associated with the hidden aspects of MJNA and that you are speculating on its future success based off the positioning and leverage the company has; not necessarily its financials.

    Factors that will drive MJNA up in the long term

    Besides online buying, MJNA products are sold almost entirely in Colorado, a state with a population of a mere 5 million. Massachusetts alone has 1.5 million more residents, thus possessing a larger medical marijuana market than that of Colorado. There has been talk in the past of MJNA expanding into multiple more states in the near future, but there has been no word on this yet. The most populated state in the US, California, has thousands of medical dispensaries with a huge market potential for MJNA.

    Timeline of medical marijuana in US

    (State-level legalization)

    • 1996 - California

    • 1998 - Alaska, Oregon, Washington

    • 1999 - Maine

    • 2000 - Colorado, Hawaii, Nevada

    • 2004 - Montana

    • 2006 - Rhode Island

    • 2007 - New Mexico, Vermont

    • 2008 - Michigan

    • 2010 - Arizona, New Jersey

    • 2011 - Delaware, Washington DC

    • 2012 - Connecticut, Massachusetts

    • 2013 - New Hampshire, Illinois

    *This list does not mention the legalization of marijuana for Washington and Colorado this past year

    Although expansion into other states besides CO has been slow for MJNA, Canipa Holdings, a wholly owned subsidiary, has recently found success. MJNA's international expansion/ marketing division signed a monumental deal with a large European pharmaceutical/ cosmetics company. The press release was issued on Canipa Holdings website on July 31, 2013 stating that

    "Canipa Holdings has signed an exclusive worldwide distribution and marketing agreement with a prominent European-based pharmaceutical/ cosmetics company. Canipa Holdings will manage the marketing and distribution of the European company's portfolio of over twenty hemp-based consumer products. The products will be added to theHempMedsPX platform."

    MJNA has now acquired 20 new hemp products to sell through the HempMedsPX platform. The press release goes on to state that MJNA has acquired the exclusive online sales and marketing rights for these products to be sold anywhere excluding the Middle East, Poland, Czech Republic, Hungary, Slovakia, and Latvia. It also appears that MJNA will be attempting to bring these products across the pond to be sold in the United States, Canada, and Mexico.

    The most exciting part of this press release is that these products are already sold in 2,000 pharmacies and 1,000 retail stores in Europe. I am not sure if these stores are in the countries that MJNA is not allowed to sell in or if they will be receiving revenue from these stores; regardless it is a good sign that these products are sold in 3,000 stores already.

    Charles Vest, the director of communications for HempMedsPX states that

    "Some of the products Canipa Holdings will be marketing and selling are approved for specific medical claims in parts of the European market"

    It is a huge deal for MJNA to sell products that have approved medicinal values; something that no medical marijuana product has in the US. I am assuming that these approved hemp products are the ones that are sold in the 2,000 pharmacies in Europe.

    (click to enlarge)

    *This chart is a reminder of cannabis's many uses. MJNA's most recent acquisition of acquiring 20 new Hemp Products only increases their market presence.

    The Future

    The marijuana industry is strapped to a rocket going straight up, whether MJNA is on board or not depends on their personal success. The industry is expanding at a slow rate, but with each new law that is written up and passed; exponential expansion starts to take place. Out of the 50 states in the US, 21 of them have already passed medical marijuana laws, with up to 7 more states looking to legalize medical marijuana in 2014. Multiple more states are in the process of legalizing hemp, which could considerably grow MJNA's hemp sales. Whenever a new state enters the medical marijuana market they look for suppliers; MJNA is positioning itself to be that supplier.

    Although the Canipa Holdings deal has not received much publicity, I believe that it will help lead MJNA down the path of success. This deal will aid in both MJNA's short and long-term success since their hemp products have the ability reach a much larger audience compared to their Marijuana products. If MJNA can effectively market and sell these hemp products, in not just Europe but also North America, their dwindling cash and falling profits could quickly be reversed.

    Disclosure: I am long OTCPK:MJNA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Tags: MJNA, long-ideas
    Aug 16 7:32 PM | Link | Comment!
  • Are Marijuana Investors Smoking Their Investments?

    I awoke a few mornings ago eager just like every other morning since I purchased Medical Marijuana (OTCPK:MJNA) in November. Half awake I starred at my computer screen as my eyes fixated on MJNA's 20% loss. Intrigued, I looked for the culprit, which I found almost immediately. My eyes now fully open, read in disbelief as I watched my favorite Marijuana Company slandered right in front of me. After finishing the article, I realized something was amiss. Multiple inaccuracies plagued the paper, and within hours many parts of it had been pulled.

    I decided to do my do diligence as an investor and reporter, and found the Investors relations website quickly phoned the Investor Relations Manager of MNJA

    Stuart T. Smith answered the phone, a knowledgeable and friendly guy, he was able to smooth out all of my morning uncertainty. My first question for him was regarding the tier that MJNA is sold in, which is OTC Pink Sheets. This tier is one of the lower tiers that a company can be in, and describes how much information they report to the public and how frequently. This tier does not necessarily reflect the quality or risk involved, but mainly stands as the barrier between a company that follows all US reporting laws and not. For more information check out the site here

    Yes MJNA is currently classified as OTC Pink Sheet, but Stuart insisted that MJNA was in the process of converting to a higher tier, now that they are making money, since most company's start off in the Pink Sheets to save money. It takes 24 months of official auditing recorded with the SEC for a company to upgrade tiers, and so far MJNA has 3 months of audited financials, meaning that their past three months in fact are valid.

    My main concern from the slanderous article was not about the absurd portraits it attempted to paint about the executives (most of which were false) but about how it claimed MJNA was cooking the books using uncertified CPA's. Well all of that is just false. They use certified, Anthony W. Imbimbo & associates. I read reviews from his clients, and the only negative that I was able to find was that his office was cluttered. Not that he was some unethical sleaze ball (here's the link.)

    I have to quote one line of the article, just because it is such a joke. It reads "Anthony W. Imbimbo culinary institute of America trained chef (with a minor in cooking the books.)"

    Where was information found that he is a cook, maybe he was 30 years ago? And why in the world do you think he is cooking the books, when you have no evidence.

    But lets get back on track.

    What I learned from my call with Stuart helped reinforce my confidence in this company and leads me to believe that before three months ago MJNA wanted to be in the Pink Sheets since they really had nothing to show in their financial statements. After they started making substantial gains in revenue tough, they wanted to report it to investors to show they are now legit, thus the reason why they are attempting to make the switch.

    With the so called "slanderous article" being released just two days before MJNA comes out with their annual report, and first forward looking projections, I see the article as being no more than a well timed hate article. I will let you decide if it was merely a coincidence that this author took information that has been out their for years and decided before MJNA's biggest announcement of all time was the proper time to unleash it. Also on a side note, Kentucky passed its hemp bill, meaning MJNA could now expand to another state.

    The main goal of this article is not to persuade you that MJNA is a good buy or not, but to act as a reminder that you can't always trust everything you read, and that some investors put out reports in hopes of affecting stock price. Don't be tricked by one misinforming article, do research and let the facts speak for themselves.

    Disclosure: I am long OTCPK:MJNA.

    Tags: MJNA
    Feb 18 11:43 PM | Link | 8 Comments
  • Marijuana; The Final Frontier

    The last untapped resource in the world is Marijuana. Why, How, Who, What? Yes, Marijuana. It is not growing, it is already grown. Currently 95% of marijuana is sold illegally. This billion dollar industry is run by drug cartels, and their power is diminishing by the day, as more marijuana is supplied legally.

    This is undoubtedly the next gold rush. Jump in and drown in the CASH!!!

    Disclosure: I am long OTCPK:MJNA.

    Feb 07 6:15 PM | Link | 4 Comments
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