I have never seen this before, and it clearly baffles me. Why is Medical Marijuana Inc (OTCPK:MJNA) getting pin point bashing? In the land of pennies 99% of them are shells, scams, and a trap set and waiting for the next naive investor...why bash one, that among the rest, is the top of its "class". That is part of the 1% that has a chance to be something... Quite simply I don't know. Penny stocks don't need bashing because they usually self implode. For a penny stock to receive bashing and withstand it like MJNA has, is quite remarkable to me.
This one penny stock is in the center of all view points in politics, society, and finance due to the major controversy over whether or not Marijuana should be legalized or kept illegal. It's a battle between the generations. So is MJNA just another penny stock?
Unlike other OTC stocks, MJNA reports financials and has better clarity with their investors than most other penny stocks, but it has a long way to go to becoming completely transparent. Whether you are for or against the legalization of Marijuana, you can't deny the market for it is a multi-billion dollar industry. MJNA is the leading stock, so far, in what is the newly emerging medical marijuana industry.
I have no position in this stock but the amount of negative attention it has been receiving certainly caught my eye. In the penny stock world, for a penny stock to receive negative speculation is almost a positive sign... It means someone wants the price to go down and believes it won't do it on its own, like many others would.
From the research I have done, this stock, both financially and commercially, has an extensive line of marketable products and a significant revenue for a penny stock, and is only going to grow further. According to the very vague Q1 financials, revenue beat guidance on a revenue of 5 million.
If MJNA can become completely transparent and timely, we will see the bashers becoming fewer and confidence of investors greatly increasing. Marijuana is making headway in the area of legalization with legislation on the front burner in many states. If this transparency and legalization is achieved, MJNA will be very successful because they have a very desirable product in a sector that is expanding little by little. MJNA has many acquisitions and wholly owned subsidiaries and this is the list of the corporate holdings according to the Q1 Press Release:
CannaVEST Corp. (CANV)
Red Dice Holdings, INC
Right now Dixie Elixirs, which is part of Red Dice Holdings, is the most profitable for MJNA, with their edible products becoming very, very popular. These acquisitions have MJNA extended in all divisions of cannabis and present an opportunity for real growth. The CannaChew Gum is developed and orders are beginning to be filled. This gum is a medicine and has potential to be very popular among those who need Medial Cannabis.
Right now, due to the fact that the legalization of marijuana is a hotbed of controversy, a war between the old and new generations, MJNA is getting caught up in the whirlwind of viewpoints and controversy. People invest in it because they are for legalization and believe by investing in it they are submitting their "vote" for legalization. Likewise, those who are against legalization, are opposed to MJNA and withhold their investment "vote". It has become a political statement connected with strong emotion on both sides. While MJNA should be viewed as the best possible investment in the slowly emerging LEGAL marijuana industry at the present time, its gain/loss is often a push for or against ones political beliefs. As legalization pushes along, and the controversy and emotion winds down, MJNA should be viewed as a company with great products and potential. Granted, increased clarity is crucial to this happening, and although they are getting better(baby steps) management still has a ways to go in being satisfactory in that regard.
MJNA is currently caught in a political and emotional whirlwind on the issue of legalizing marijuana country wide and certainly has had the spotlight shown on it as the most prominent marijuana stock at this time. As legalization becomes more common and accepted, and the emotions are toned down, it will allow MJNA to be viewed as a way to invest in a potentially multi-billion dollar industry instead of a political statement. We should expect to see returns to previous highs and growth in the company which already has a very popular product and that is well vested in the different sectors of the marijuana industry.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.