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My name is Michael, I've been investing for about 3 years now, I've currently graduated with a B.S. in Criminal Justice and Law Enforcement Technology and soon to minor in Business. I've made numerous lucrative picks such as ACAD @2.10 (current 13's$), ACUR@1.42 (current 2's$), SNSS @2.51... More
  • Medical Marijuana Inc. From An Honest Perspective 2 comments
    Jun 10, 2013 9:11 AM | about stocks: CBIS, MJNA

    It has come to my attention (along with a multitude of others) that the company, Medical Marijuana Inc. (OTCPK:MJNA), has been under fire for quite some time now. It all began with Infitialis' (who disclosed he is Short on MJNA.PK after many say you can't. Investopedia is also proof of this) infamous article back in February titled "Chronically Criminal: Shielding the Public from Medical Marijuana" claiming that Chairman Ms. Michelle Sides and former President and Director Mr. Michael Llamas were both fraudsters, selfishly out to steal nothing but your hard earned money and ultimately running to Mexico together to live their fantasy lives while we were left to suffer a bitter defeat. This caused MJNA.PK to plummet, hard (more than 30% to be exact). After a few brave souls mustered the initiative to do some fancy detective work, they were able to depreciate the value and quality of the article thus giving the loyal shareholders something to hold on to and MJNA.PK slightly recovered. Shortly thereafter, MJNA.PK had others joining the bashing bandwagon. These "authors" would (and some still do) write a barrage of disparaging "articles" that continue to plague this rudimentary company week after week. After holding our breath for quite some time, Ms. Michelle Sides finally released a letter that gave shareholders some hope that they weren't blindly giving money to thieves and shell companies and that MJNA.PK was working hard to give the public what it wants.

    A Quick Timeline..

    Before August of 2012, MJNA.PK was barely able to scratch the surface of .04 cents a share. Many saw this as a bargain, others saw it as an omen. With some good publicity from esteemed sources such as: 60 Minutes, PBS, The Wall Street Journal, The New York Times, and more combined with some shareholder interest, the stock was able to jump to almost .50 cents a share, giving many delusions of grandeur that this would become the next Medbox, creating overnight millionaires. For those of you that don't know, Medbox went from a 52 week low of .03 cents to a 52 week high of $215.00 dollars per share. Needless to say, between MJNA.PK's constant dilution and lack of timely Press Releases, this stock will not be the next Medbox anytime soon but it now sits comfortably at roughly .15 cents a share with a market cap of 111.42 Million and a nice volume between 5 and 10 million daily.

    What Medical Marijuana Inc. Does..

    Despite its name, Medical Marijuana Inc. doesn't just roll some blunts and pass them off to children in schoolyards. MJNA.PK is the father company of numerous subsidiaries in which it bases its affairs.

    "The company is comprised of a diversified portfolio of products, services, technology and businesses solely focused on the cannabis and hemp industries. These products range from patented and proprietary based cannabinoid products, to seed and stalk or isolated high value extracts specifically manufactured and formulated for the pharmaceutical, nutraceutical and cosmeceutical industries." ~taken directly from their website.

    Their website is both visually pleasing and very informative as it hold's most of the information you most likely seek. Its portfolio is rather impressive and although transparency is a thing to be desired, it shows a lot of promise, something that investors are banking on in the supposed coming "green rush". Its subsidiaries are as follows:

    1. Canipa Holdings (100% holding)
    2. CanChew Biotechnologies (50% holdings)
    3. CanChew (50% holdings)
    4. HempMeds RX (80% holdings)
    5. Kannalife (16% holdings)
    6. Red Dice Holdings.LLC (60% holdings)
    7. Phytosphere (80% holdings and sold its production rights to CannaVest)
    8. Wellness Managed Services (100% holdings)

    The company's most popular affiliate, Dixie Elixirs and Edibles, is what draws the majority of attention. With its amalgamation of products such as CBD infused drinks and food stuffs, it boasts a long line of interesting and appealing items. Again, for those of you who do not know, CBD is Cannabidiol. It is 1 of 85 cannabinoids found in Cannabis, aka Marijuana. Cannabidiol is more commonly associated with medical sectors and unlike THC, it is non-psychoactive. Many believe that the Marijuana plant holds a plethora of secrets and remedies for most ailments in which it is the basis of another stock known as OTCQB:CBIS or Cannabis Sciences, but that's a whole other story. With that being said, it seems that MJNA.PK is more interested in providing holistic and natural approaches to self-improvement than what you normally put into your body on a daily basis. Although I live rather far from their staging point in Denver, Colorado, I have yet to get my hands on their product's, I have however, communicated with people who have tried them first hand and I have heard nothing but good things about them. Seeing as how there is a physical line of products being researched, produced and distributed, it gives the individual something to believe in. I would like to add that MJNA.PK DOES NOT violate any federal or state law's regarding the Marijuana plant.

    I would also like to note CanChew Biotechnologies new product of CBD installed gum that seems to be a hit. It's first batch has sold out almost instantly upon release and multiple first hand reviews are filled with excitement. One customer claims that after three consecutive days of using this product, their knee pain has basically vanished and their body has been overcome by comfort and neutrality (Not a high). Although this isn't a legitimate scientific study, it's still interesting to hear a customers testimony.

    Finally, an associate and I have been tracking the recent trend of followers on the still popular social network, Facebook. It would seem that the Facebook community is in support of Medical Marijuana Inc., Dixie Botanicals and Dixie Elixirs and is still increasing according to the following statistics:

    Financials..

    The thing we've all been waiting for, money, after all what is a business without cash? It has been said numerous times that MJNA.PK has submitted its 24 month audited financials for SEC review so that up listing can occur, but we have yet to receive any news on that. Regardless, the silver lining is that MJNA.PK has been releasing financials for public review. The reason this is good news is simply because pink sheet stocks, more commonly known as penny stocks, technically don't have to submit financials for auditing, let alone release them in such an open manner. Although it has been noted that transparency is something many individuals still seek from this stock, it would seem that MJNA.PK and its team are genuinely attempting to reveal itself more as time goes on. As for dilution, many use it as an excuse as to why this might be a scam, but it's rather deeper than that. With approximately 935,988,318 shares outstanding, pumpers, bashers, shareholders and readers alike ask, why? Well here's the deal that many overlook. The Marijuana industry is still a gray area and MJNA.PK needs to get its money somewhere. Although it does receive annuity from its subsidiaries, it still requires additional funding. Seeing as how almost no bank will invest in a company believed to be based in dealings with illegal substances let alone a penny stock (much like a high school student applying for credit cards), money for advancement is difficult to come by. Many see this new dilution as big news soon to come, others still claim it's for personal gain. As for profits, by negating the CannaVest deal from the equation (now listed as extraordinary items on the Financials), MJNA.PK has gradually increased its Net Income from $42,613 in March 2011 to $1,479,129 at the end of March 2013 (according to their audited 1Q-2013 financials). Personally, I feel that even though the CannaVest deal hasn't been completely brought to light yet, the fact that this company is spending their money on means of advancement rather than personal vacation's to Mexico gives me a tad bit of relief. For a rudimentary company on the verge of a new era, I think they're doing decently well for a baby business.

    (click to enlarge)

    In Conclusion..

    I feel the recent slew of articles being produced against Medical Marijuana Inc. are both biased, deceptive and unfair to the shareholders and the company itself. They are produced almost continuously and have caused a drop in the PPS almost every time. Statistically, out of the last 30+ articles written about MJNA.PK by independent writers this year, over 20 of them were derived from Seeking Alpha and over 15 of them were written by the same author(s). The most recent piece has gone as low as to contain an elementary and demeaning tone while attacking individual shareholders themselves. I am unsure what the motives are for such a barrage, nor do I care to play detective because it won't do us shareholders any good. Any company comes with its pumpers and its bashers, both working for personal gain but to only talk about one side is exactly that, one-sided. Although this company leaves some things to be desired, it's still a viable investment for long term traders. It also most certainly does not deserve the attacks that have been brought against it. With a track record of subsidiary acquisitions, increasing profits, 40,000 shareholders and a pipeline of products, I feel this can be very lucrative in the future. Please realize however, this will take some time, you will not become rich overnight but a little patience should yield some nice results. We must also remember that PPS doesn't necessarily represent the actual value of the company, but has become more of a sentiment of how investors feel about it. As of right now, although this is coming down from a spike of .50, its still enduring from a low of .02 which is astounding for any penny stock. This shows potential, not only to me, but to 39,999 other investors as well it would seem.

    Personal Disclosure

    I have been long on MJNA.PK for roughly a year's time now and had bought in around .03. I am not a bag holder nor am I a short. I do not look to put anyone down or pump this stock in any way or form. Although I do read message boards, I do not belong to nor do I post on any of them. I simply want to view this from both sides and I do intend to hold my position for some time. I would also like to refute any claims of me being a short or deceptive in any way, I simply got my information from legitimate forms, websites and personal research. Shorts can ALSO be classified as traders who trade shares on a daily basis, any time period below one year which puts the trader in a different tax bracket. I do not fit this definition. I am also not receiving ANY payment from Seeking Alpha or any other organization and any decision you make on this stock is solely at YOUR discretion.

    Disclosure: I am long OTCPK:MJNA. 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: CBIS, MJNA
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Comments (2)
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  • Alan Brochstein, CFA
    , contributor
    Comments (7506) | Send Message
     
    >>>These "authors" would (and some still do) write a barrage of disparaging "articles" that continue to plague this rudimentary company week after week. <<<

     

    You talking about me or Ashraf? Instead of calling me an "author" who writes "articles", why don't you say what I said that was incorrect. By the way, check out BIZM before you call Ashraf an "author". More like a sleuth. Better, an elephant hunter who bagged his target.

     

    Here, there are many things that aren't factually true. One is that the company has submitted audited statements going back 2 years. This is simply not true, as they don't exist.

     

    Here is another: "Although it does receive annuity from its subsidiaries, it still requires additional funding." What annuity? Why additional funding? They have given tons of stock to the COO/Chairman. If you go back and look at the original deal from 2011, you will see that CannaBANK took the shares and never delivered the assets.

     

    I certainly won't criticize you for sharing your views, but I regret the way you apparently characterized me. You gave some very good advice here though. Good luck...
    6 Jul 2013, 10:23 PM Reply Like
  • Abuelo Favorito
    , contributor
    Comments (385) | Send Message
     
    Hey nice article, I liked the way you presented your comments from a "long" perspective and not a "get rich quick" point of view. With recreational use not actually going into affect until 2014 I believe the prudent thing to do (speaking of myself only) is take a "wait and see" approach.

     

    With that said I would like to see MJNA clean up some of the fogginess with their financials and fulfull some recent promises like board appointments, 24 month audited financials and continued progress towards uplisting.

     

    Finally, I was glad you mentioned the fact that MJNA is NOT required to release audited financials but yet they do and that they have REAL products.

     

    Nice job overall, thanks for writing it.

     

    Disclosure: I've been long for six months
    8 Jul 2013, 08:00 PM Reply Like
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