Seeking Alpha

Alan Brochstein's  Instablog

Alan Brochstein
Send Message
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
My company:
420 Investor
  • InvestorsHub Is A Joke 9 comments
    Apr 28, 2013 9:31 AM | about stocks: MJNA

    Every article I write about a MJ stock gets posted in full over there, even on moderated boards. Meanwhile, they deleted this comment:

    Buxley, you raise a good point about the quality of sales. In my last Seeking Alpha article (http://seekingalpha.com/article/1369511-the-haze-lifts-96-of-medical-marijuana-inc-q4-sales-from-questionable-transaction) I posted a comment regarding what's going on at CANV. They disclosed in mid-April:

    "To date, our operations have consisted of selling $1,275,000 of raw Cannabidoil product to third parties, such raw product obtained by us through inventory acquired from PhytoSPHERE Systems, LLC and contracts with various suppliers in Europe." (the date was April 16th and this means that they have not been very successful in making the sales - MJNA booked sales to them, but they must be sitting on inventory)

    It's bad enough that MJNA counts worthless CANV stock as "sales" (CANV was worth .05 per share when Mona and his group bought the shares in November - $5 is insane), but this appears to be a shell game. MJNA sells to CANV, and CANV can't sell it. Steve Kubby shared on an interview that the prices for CBD oil are way lower than what is discussed (presumably by MJNA, though he doesn't say that). Great interview (starts at 11 minutes): http://www.youtube.com/watch?v=e6zn6HvoNpw

    Anyone in contact with MJNA management should ask what's going on here. Why isn't CANV making the sales? CANV has no real money or assets - it they can't sell the CBD oil, then the stock is worthless. Don't be fooled by CANV trading price - insiders own almost all the stock (it hardly trades any shares either).

    By the way, I have said that if MJNA can hit its guidance, the stock is cheap (but not if their guidance is shenanigans like taking worthless stock). I know you guys read headlines and descriptions of what others say I say, but I am just digging into the financials. Many of you have come to understand where I am coming from, and I hope that those who disagree can tell me where I am wrong. I would love to get behind this company, but they need to be more transparent about their financials and their ownership structure (i.e. why HDDC got all those shares and has control).

    Stocks: MJNA
Back To Alan Brochstein's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (10)
Track new comments
  • Author’s reply » They actually have deleted all of my comments!
    28 Apr 2013, 09:40 AM Reply Like
  • Author’s reply » I found all of my deleted comments - all six were deleted!

     

    1) Deleted as "personal attack" (note, the poster goes by Rat Fink and was discussing a conspiracy theory regarding Ashraf and Infitialis):

     

    First, that's a lie, Rat Fink. That is not what the tweet said. Second, Ashraf was just replying to a tweet that Infitialis posted.

     

    I post using my real name. I have a reputation to maintain - I can't afford to make stuff up. Neither can Ashraf. Instead of trying to figure out the messenger, you people should be focusing on the message. Detective Thorne knows this, as a few others do as well.

     

    I feel badly for those of you who entrust this company. I have more to say on the subject and will soon, unless the stock goes below 11 cents. At that point, Seeking Alpha won't publish articles since it will be less than $100mm market cap and below $1.

     

    2) Deleted as "Off-topic" - this is too funny:

     

    No, Doc K. The truth always comes out. Had you paid attention earlier, you wouldn't be in the position you are now. If I am not telling the truth, then point out where I err. And I do feel badly. I talked on the phone for an hour tonight with a guy who lost $250K in this scam. He thanked me, because it could have been worse. You can't imagine how many people I have heard from. They didn't like what I had to say, but they realized that I was just calling it like I see it. It's all in black and white.

     

    For all of you who think that I write only to make a stupid .01 per view, if that were true, then I would write pump pieces - much more popular.

     

    Here's a few things to think about. First, why is Tripp no longer on the board. Second, where is the gum that was promised by the third week of April. Third, what will the stock do when Stuart Smith walks away?

     

    3) Deleted as Off-topic:

     

    I don't plan to post here again. I did want to stop by and let all of you know that if you post in accordance with the TOS at Seeking Alpha, I will be happy to address any questions you have. If you disagree with what I have written, I am open to your criticism and am happy to hear it. You can send me a private message there as well.

     

    4) See above - called "Spam"

     

    5) Deleted as Off-topic

     

    It's really sad when someone takes the time to share their view in a factual way and it gets deleted. I am not sure why a moderator chose to delete my message, but I will post that information elsewhere. I was responding to a post by Buxley about his being right to question the sales to CANV. Per CANV filing, it has only sold $1.275mm in CBD oil despite paying $10.5mm (in shares valued at $5 for round 1 and $6 for round 2) and is sitting on inventory. Steve Kubby publicly stated that CBD oil prices are way below what's discussed. If CANV can't sell the stuff, then CANV stock is worthless and MJNA is left holding worthless shares.

     

    6) Ditto

     

    Yes, this is my 6th message, and all 5 of the previous ones have been deleted. So long...
    28 Apr 2013, 10:14 AM Reply Like
  • A fool and his money are soon part. If the folks on InvestorHub want to blindly "invest" in an OTCBB penny stock - they're going to get burned. With the mods deleting your informative posts, it's clear that the site has zero credibility.
    28 Apr 2013, 01:38 PM Reply Like
  • Alan,

     

    They might be robbing you of a few clicks, but these fools will soon lose the entirety of their investments in MJNA. Sticking your head in the sand doesn't change the facts that this is a scam company.

     

    Now wait for Perry Coleman to take a screen capture of this and accuse us of collaborating to take this to $0...heh.
    28 Apr 2013, 02:25 PM Reply Like
  • Alan or Ashraf Please Clarify Reseach on MJNA

     

    1. Have you ever called MJNA to discuss these matters with a representative from the company?

     

    2. Have you ever done channel checks with Dixie vendors, Phytosphere vendors or any of the entities related to MJNA in an effort to better understand revenues?

     

    3. Have you ever done a site visit to any Dixie vendors or other interests of MJNA to view products?

     

    4. Have you ever conducted interviews with federal or state government officials regarding the official positions on marijuana?

     

    5. Have you ever conducted interviews with patients or users of MMJ, CBD products distributed my MJNA and their interests, especially customers who regularly use their products?

     

    That is just a start but having admittedly only been following MJNA and MMJ since February 2013, I would like to hear what qualifies you to cast such aspersions against the the company and the industry. Saying you know fraud when you see it doesn't cut it because I could say the same about you and I have heard people call Apple a fraud since I first invested in 2005.
    29 Apr 2013, 10:45 PM Reply Like
  • Author’s reply » Hey, nopancakemix. I really can't answer you over on I-Hub - I get only 3 a day and they might delete this as off-topic like they deleted my first six posts.

     

    1) Never
    2) No
    3) No
    4) No
    5) No, but I have read good things

     

    Your question regarding my qualification is a joke, right? I am not a journalist, a sell-side analyst or anything except someone who knows how to read a company's filings and press releases and find inconsistencies, at least when it comes to MJNA. I am not even a fraud expert (though I uncovered a ponzi scheme that blew up in 2001). All those things you are talking about don't matter if the financials aren't legit. Finally, I raised questions, I didn't say "it's a fraud". Fraud is a strong accusation. It could just be "real sloppy". I don't know, but I said it was a bubble, and it was. Now, maybe it's not. But, they need to mop up the mess they call their financial statements...
    29 Apr 2013, 10:55 PM Reply Like
  • Geez. I sure hope execute far better due diligence in the analysis you offer to hedge funds, institutions, and your investment committee. I am pretty shocked you are able to make such bold claims regarding MJNA without ever contacting th company. Good thing you're not a judge because you have declared guilt without ever hearing one side of the argument. A lack of response does not confirm guilt as our system favors innocent until proven otherwise.

     

    And I would go calling this a bubble yet. I don't think you'll see the real bubble until Colorado and Washington implement the recreational legalization amendments (the same amendments top law makers are saying will be unconstitutional if repealed).
    30 Apr 2013, 02:43 AM Reply Like
  • It's so obvious MJNA is highly highly suspect. Alan and Ashraf are being far too diplomatic with their articles. I think Infitialis nailed it. Another few months (if that) and MJNA will likely be trading under a few pennies like the hundreds of other hyped up penny stocks.
    30 Apr 2013, 03:02 AM Reply Like
  • "I would love to get behind this company, but they need to be more transparent about their financials and their ownership structure"

     

    I think you pretty much see through their "financials" and ownership structure already.....You and others have done a fine job of exposing the questionable foundation of this House of Cards..... Thanks for your efforts and keeping the heat on these guys....
    1 May 2013, 03:06 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • $TRTC - big week next week
    Apr 11, 2014
  • $CANN traded much better than feared
    Apr 11, 2014
  • $VAPE worst-case on litigation is shares go from 11.5mm to 15.5mm
    Apr 11, 2014
More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.