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Alan Brochstein, CFA
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Alan Brochstein, CFA has worked in the securities industry since 1986, primarily with the responsibility for managing investments in institutional environments until he founded AB Analytical Services in 2007 in order to provide independent research and consulting to registered investment... More
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  • MJNA: Seeking Alpha Writers Litigation Is Misguided 27 comments
    Apr 30, 2013 10:15 AM | about stocks: MJNA

    MJNA has issued a press release. I want to address several of the aspects. There is one key line (in the conclusion) that I think they should re-read:

    "Instead we will let our actions, products and revenue speak for themselves. The only way to combat these individuals is with success."

    This follows this:

    SEEKING ALPHA WRITERS LITIGATION:

    I am aware that there are those who feel that litigation should have been commenced by now against Seeking Alpha blog writers that have published numerous negative articles attacking the Company and its management. Some have suggested that our failure to do so is negative reflection on MJNA. I have personally met with litigation counsel to go over the defamatory statements that were presented by Seeking Alpha writers in several of the article(s). The case is clearly laid out. However, it is also more complex than just pursuing defamation claims against a writer and a website as some have stated. The article(s) were blatant attempts, albeit briefly successful, to manipulate our stock price, to damage our shareholders and to create fear and doubt about our credibility. The actions from this group of individuals commenced by the parties posting numerous positive articles about MJNA all while knowing these same individuals would then collectively post those defamatory article(s) right before our quarter financial posting to significantly drop the stock value for nothing more than their personal gain. MJNA had no part of these actions, did not authorize, benefit, participate or have knowledge of what was being written.

    These individuals perform the same actions each quarter and shamefully boasted about their success. Our litigation attorneys are gathering relevant information, will assess the possible claims against all responsible individuals. The Company will move forward based upon the advice and conclusions of our legal counsel.

    All we can ask of our shareholders is that you perform your own due diligence to find out the complete facts versus reacting to postings by individuals who are obviously manipulating the stock value for dubious reasons.

    I don't know if they consider me among those making "defamatory statements", but I would point out that they corroborated my view of how they booked the first installment of CANV stock. I have not received a single request for a correction to anything that I have written and encourage the lawyers or company representatives to point out any material misstatements I have made. I also want to point out that I post with my real name and have no relationship whatsoever with Infitialis. I have communicated with Ashraf Eassa, but I have never colluded with him in any way, and he, like me, posts with his real name. We are both leading contributors to Seeking Alpha and share a common view about the lack of transparency at MJNA and its lack of value as an investment, which we have shared as our opinions. Further, I have no stake in MJNA. My motivations have been clearly and completely disclosed.

    MJNA is not telling the truth at all when it discusses conspiracy of Seeking Alpha publishing positive and then negative articles. I am easily found by email, address or even phone number, and I encourage anyone to contact me if there is any doubt on this matter. I especially encourage the company to contact me, as I would like to know specifically which statements I have made are not true. I will immediately correct any misstatements or factual errors.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: MJNA
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Comments (27)
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  • Kyle Spencer
    , contributor
    Comments (998) | Send Message
     
    We can't predict whether or not our analysis will go viral or become a meme. Sometimes you're wrong, and everyone is listening; sometimes you're right, and no one is listening. I wonder if MJNA realizes how ill-advised it is to attack Mr. Brochstein in this manner, as it exposes the company to potentially serious legal liability.
    30 Apr 2013, 11:28 AM Reply Like
  • Stephen Simpson, CFA
    , contributor
    Comments (1543) | Send Message
     
    Alan,

     

    I love it when lousy companies start throwing around allegations of misrepresentation, defamation, and so on. While it plays well to their crowd (credulous retail investors), I think they'd find the discovery process of an actual lawsuit to be quite adverse to their own interests.
    30 Apr 2013, 11:36 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Ya think?
    30 Apr 2013, 11:47 AM Reply Like
  • UpInSmoke
    , contributor
    Comments (32) | Send Message
     
    Don't be afraid of their petty legal threats. Telling the truth is not against the law yet! Ask Michelle Sides, COO MJNA, she's a lawyer. Too bad she's not allowed to practice in her own state anymore.
    30 Apr 2013, 07:29 PM Reply Like
  • tsandquist
    , contributor
    Comments (25) | Send Message
     
    Do some more research, Pal
    1 May 2013, 01:39 AM Reply Like
  • samiam420
    , contributor
    Comment (1) | Send Message
     
    Get over yourself.
    They aren't talking about you. They're talking about infitalis and the crew that admittedly manipulated MJNA.
    30 Apr 2013, 10:52 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Really? They used plural and kept saying "article(s)", so who are they talking about besides Infitialis? There have been just a few of us at SA. Of course, I think that they were doing some serious product testing before they baked up that whopper of a lie about positive articles followed by a negative article - what was that about?
    30 Apr 2013, 10:56 PM Reply Like
  • Tetractys42
    , contributor
    Comments (3) | Send Message
     
    Possibly referring to Perry Coleman's articles, et al. Take a look at the history leading up to early-mid Feb: http://bit.ly/18oJZVI . Up to the middle of February, the articles seem to lean positive. On Feb 15th and onwards, there is a sharp turn towards negative. The financials were always the same, but the commentary changed. I understand if you don't see it that way, given that there are positive and negative articles on both sides of early-mid Feb, but I hope this explains their perspective to you. (BTW, I used to be User818.)
    1 May 2013, 08:44 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Nice to hear from you and thanks for the comment. You are one of the participants at I-Hub who brings something to the table. MJNA loves Perry. Cited his good work in a press release! They never took the time to walk away from his published prediction that MJNA could do $26 billion in 2014 either when they were calling him "our author". Endorsing the guy without disputing his conclusions...

     

    Seeking Alpha has no bias. I posted on I-Hub last night regarding this issue. Their biz model is clicks, but they have to maintain quality. This means lots of authors and articles don't get published, and those that do have to meet very high standards. There is no editorial bias, like Investor Business Daily, Wall Street Journal or New York Times. There is no committee that "takes a stand" - we are bullish and now we are bearish on MJNA. The folks on I-Hub must be blind, as they see only bearish, while SA has published bullish and bearish and not in a pattern either.

     

    By the way, you might tell those guys that if they don't want their comments deleted, then all they need to do is abide by the TOS, just like I-Hub. I had my first six messages there deleted. While I disagreed and think that there was a moderator with an agenda, I learned that there are rules and one must abide by them.
    1 May 2013, 08:53 AM Reply Like
  • Perry Coleman
    , contributor
    Comments (581) | Send Message
     
    That would be ironic, to think that I might have to sell my MJNA shares to defend myself against MJNA. I'll be holding though until that happens.
    1 May 2013, 09:29 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Perry, what did you think of what they said in that excerpt above? Seriously.
    1 May 2013, 09:39 PM Reply Like
  • biffpincus
    , contributor
    Comments (51) | Send Message
     
    Alan, I too thought MJNA's press release was misguided in their conspiratorial suggestion that SA (and you by implication) was involved in attacking their stock in a concerted effort. I found the PR self-serving (which I guess is the point : ) when they did not address the salient issues of the Cannavest investment you brought up -- specifically the inflated stock values of extremely thinly traded shares. I sincerely wish they had addressed your questions more directly.
    1 May 2013, 10:18 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Thanks. I concur. There are several others who seem to get this too, but I think just the fact that they regurgitated the deal and threw numbers and the name CannaVEST out there was sufficient for many who view these observations (mine) as a distraction at best or possible conspiracy of lies at worst.
    1 May 2013, 10:22 AM Reply Like
  • Bonkle
    , contributor
    Comments (14) | Send Message
     
    Alan, I think you've covered your tail. There are others who insisted on calling MJNA a pink stock long after it had risen to plain vanilla OTC. (But now it's pink again!) Either these guys were working from ignorance or they were intentionally mislabeling it. That's pretty blatant. Writers also attempted to smear current management with the failings of the previous management. Their tails, compared to yours, are quite uncovered and are itching for a stitching, as my father used to say.
    2 May 2013, 10:03 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » I don't know all the history - just showed up in mid-February. It's a real mistake by the company and folks on I-Hub to not understand how SA works. It's a platform - the writers aren't connected. We submit articles that are accepted or rejected. SA just wants well-written articles that provide insight. I have seen them boot authors who make too many factual mistakes. SA makes it easy to dispute an article - every article has a button.
    2 May 2013, 10:07 AM Reply Like
  • princehamlet
    , contributor
    Comments (172) | Send Message
     
    Perry,Alan,what about SKTO?lemme hear it...
    6 May 2013, 04:45 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Haven't looked at it much - looks extremely hyped. This is what I am waiting for:

     

    "SK3 also reports that it has registered with the disclosure services of OTC Markets and is preparing its financial statements for calendar years 2011 and 2012 which will be filed along with the required company disclosures, to return it to full public information disclosure status. It is anticipated that the financial statements and company information with be filed next week."

     

    That was April 11th, and they filed the report but then filed a totally different report. They just did two acquisitions and the share-count is set to soar, with the company now controlled by iEquity, which has 60% of the stock through a convertible preferred. Even with the filing, OTC Disclosures has some sort of warning. The bottom line is that this doesn't look pretty to me, but I will look more closely in the future.
    6 May 2013, 05:06 AM Reply Like
  • princehamlet
    , contributor
    Comments (172) | Send Message
     
    The CE will be off this week for sure,they filed the attorney letter with it.Filed thursday,it takes 3-5 business days to come off.One of the shareholders id Robert Hipple,who was busted for acams in the past.The tricky part is they also have 3 succesful business men on the board now,and the Lieutenent Gov( future governor)Gavin Newsome gave his blessing to the company.the Hipple connection is what is holding her back.Unless Kevin Allyn has stake in Iequity ,control could be lost by conversion?
    They seem to be making all the right moves...
    6 May 2013, 12:45 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Interesting. Will have to check it out. I fear it's not the real thing everyone wants...
    6 May 2013, 12:55 PM Reply Like
  • princehamlet
    , contributor
    Comments (172) | Send Message
     
    I know, Robert Hipple has a shady past but I don't understand why Gavin Newsome would endorse,Kevin Allyn and Jeff Benz would sign in to a scam when they could have bought a clean shell. The CE is off , that happened a few hours ago .The daily chart shows right when as it increased dramatically.
    I think managing colllectives might be better bet on a flooded market.
    Currently heavily invested in ONVO .I like exciting stocks until I get rich! ;)
    6 May 2013, 06:08 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » I was just looking at ONVO. Pretty cool stuff. I was hoping to find something glaringly obvious in a negative way but failed! Nice chart, good story, and good people from what I can tell.

     

    It seems like the revamped SKTO is a real pot stock and not a fake one like so many of the others...
    6 May 2013, 06:12 PM Reply Like
  • escabaro
    , contributor
    Comments (26) | Send Message
     
    LOL skto is the real pot stock???? Common alan...

     

    SKTO has iEquity like MJNA has HDDC...
    8 May 2013, 03:29 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » Follow the thread - I don't really know it. I am just reflecting upon what PrinceHamlet is saying. They touch pot. They aren't a CBD company from what I can tell. MJNA is a CBD company. CBIS is a BS company. HEMP is a fraud.
    8 May 2013, 04:26 PM Reply Like
  • princehamlet
    , contributor
    Comments (172) | Send Message
     
    Kevin Allyns house being in foreclosure adds a twist ....although some rich people let homes foreclose..I guess...
    7 May 2013, 10:15 AM Reply Like
  • princehamlet
    , contributor
    Comments (172) | Send Message
     
    He said A real pot company, not THE real pot company.Anyway ONVO is the real play.Although I did buy SKTO, too.They will manage collectives and help navigate the grey areas of the law .
    I am of the opinion there will be no Top Dawg in the marijuana industry.It is too fragmented and filled with individual free spirits who will grow there own or support local small growers.Full legalization would have a flooded market in 2 years. Weed suffers the larger the grow operation for obvious reasons .It will be more like the wine industry -full of small delicious company that more than fill the public demand.When I grew my own I did not purchase weed all year , saving me lots of money.That was all in the past of course;)
    9 May 2013, 12:19 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7509) | Send Message
     
    Author’s reply » well said, princehamlet: No Top Dawg
    9 May 2013, 12:26 PM Reply Like
  • princehamlet
    , contributor
    Comments (172) | Send Message
     
    It's all about the liver assays , Alan.
    9 May 2013, 12:19 PM Reply Like
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