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I cover entrepreneurial topics and investing topics related to the legal medical/recreational marijuana industry.
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  • Medical Marijuana, Inc. Diversifies And Goes Abroad 0 comments
    Mar 25, 2013 7:31 AM | about stocks: MJNA

    Medical Marijuana, Inc. (OTCPK:MJNA) is known as one of the more popular, and well established "weed stocks" to many investors and speculators in the medical marijuana industry and we'd like to take a look at a recent announcement involving their operation going overseas. Most companies within this space are solely focused within the United States market and laws, but Medical Marijuana, Inc. is going abroad and diversifying their business operations so they aren't so dependent on the sluggish nature of medical marijuana legalization and reformation of laws within the United States.

    In the past we have seen the good and the bad from Medical Marijuana, Inc, as many of you probably have heard, they have had some whistleblowers breathing down their necks and many investors wondering what exactly is going on. However, Medical Marijuana, Inc.'s CEO, Ted Caligiuri, isn't letting this activity slow the company down, and now we are seeing him and the company make a move for expansion. Medical Marijuana, Inc.'s corporate update, released on March 20, shows insight to the possible future of the company.

    "Medical Marijuana Inc, the industry leader in terms of products and services, is not standing still and admiring their accomplishments. Rather the company is out exploring opportunities to develop markets and relationships around the globe. Through investment or acquisition, the company seeks new products, new markets and news ways to educate and inform a worldwide audience on the health and wellness benefits of phyto-cannabinoid based health and wellness products."

    Medical Marijuana, Inc. will attack emerging markets head on as countries worldwide continue to pass medical marijuana legislation and position themselves to be poised to capitalize on the opportunity as it arises. Medical Marijuana, Inc. officially set it's crosshairs on four very different countries, and just like the United States, have very differing local laws and circumstances to consider...

    Czech Republic

    Medical Marijuana, Inc. already owns facilities to grow and process hemp in the Czech Republic, giving them a huge competitive advantage over other companies who plan to bring their products to the Czech Republic in the future. Medical Marijuana, Inc. plans to sell their Cannabidiol-based (NYSE:CBD) products, and they are looking at ways to license and expand its industrial hemp and medical marijuana products and services in the Czech Republic.

    The Czech Republic is still working on developing additional medical marijuana laws, but CBD products are currently legal to sell. Medical Marijuana, Inc. already has a network of pharmacies who sell their over-the-counter nonprescription products, and when the final legislation is finished Medical Marijuana, Inc. "expects an easy transition" from non-THC hemp-based products, to their THC medicinal cannabis lines, especially Dixie Elixirs.

    Italy

    Italy is the fifth most populated country in Europe with over 60.8 million inhabitants, which gives Medical Marijuana, Inc. a big area to expand if all turns out as planned. Italy also has a very high standard of living, high GDP, and is in the world's top ten in quality-of-life, which are all good factors to see when evaluating a new market. With the legalization of medical marijuana recently approved wihtin Italy, Medical Marijuana, Inc., and their European counterparts expect to have products available on the online Italian marketplace in April. They will be selling to pharmacies as well as directly to consumers.

    Canada

    Currently to get a medical marijuana prescription in Canada, you must need "end-of-life-care", similar to New Jersey's laws. There are anywhere from 25,000-50,000 patients in Canada, but the Liberal party has the legalization of marijuana as part of their party's platform. If it were to pass, they would need over 2,700 retail outlets to service the huge demand. Medical Marijuana, Inc. is planning to bring its full line of products into this previously untapped market. Medical Marijuana, Inc. will sell PhotoSPHERE's high concentration CBD oil to Canadian businesses through marketing and licensing agreements.

    Caribbean Islands

    In many of the Caribbean Islands, marijuana is not legal, but police generally look the other way when cannabis is being used recreationally. Many Caribbean nations want a regulatory environment that complies with the United Nations so they contacted Medical Marijuana, Inc. about their products, and how their products could help them comply with the United Nations. Medical Marijuana, Inc. helped clarify about their "seed to sale" operations, and how they work. This presents opportunities to sell over-the-counter CBD and non-THC based products in these nations.

    Our Take

    Medical Marijuana, Inc. will launch all of its products and services in these emerging markets while still investing in domestic manufacturers and distributors. They are also aggressively developing additional over-the-counter products in the United States and will bring these products to the newly emerging markets.

    The day of this announcement, Medical Marijuana, Inc. went up over 8%. Insiders and investors could not be more happy with the news, assuming all goes according to plan. However, like we mentioned before, Medical Marijuana, Inc. has made a few questionable decisions in terms of operation that has the media in a flurry and many investors a little uneasy. This announcement looks to be taking full effect soon, but you never know until it actually happens and we start seeing some progress within these countries and we keep seeing popularity for the company continue to grow. (Over the last three months their stock jumped 167% from $.104 to $.278 showing serious investor interest)

    Lastly, without diving into too much of the financial data, or lack thereof, we like to note the very high beta of 5.65 and its corresponding volatility. This is a metric we like to look at with "weed stocks" and it may be a cause for concern for some. Even though the volatility does not scare us, this combined with Medical Marijuana, Inc's history, and the fact they are on the pink sheets does. This is definitely a risky investment, but announcements like these make us and many investors more and more comfortable to throw some pocket change, at the very least, to see if this company can follow through.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCPK:MJNA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Themes: long-ideas Stocks: MJNA
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