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Medical Marijuana (MJNA.PK +41.1%) surges after issuing a shareholder update and letter to...

Medical Marijuana (MJNA.PK +41.1%) surges after issuing a shareholder update and letter to address what it calls "recent blog articles" attacking the company. MJNA provides a lengthy defense of the CannaVest (CANV.OB) deal, recently the subject of sharp criticism from SA contributor Alan Brochstein, and says it will provide details about the transaction in its Q1 filings, due to arrive by May 15. Also, chairman/COO Michelle Sides insists she hasn't sold any shares in the company. Update: Brochstein defends himself in an Instablog.
Comments (24)
  • Clayton Rulli
    , contributor
    Comments (2462) | Send Message
     
    ooo JUICY
    30 Apr 2013, 11:06 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7498) | Send Message
     
    I posted an instablog and will defend myself vigorously. No one from the company has ever attempted to contact me regarding any misstatement. In fact, their press release today confirms my view of their accounting that I described in writing.http://seekingalpha.co...
    30 Apr 2013, 11:26 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7498) | Send Message
     
    Tripp Keber goes off the Board and no one named. They are down to 3 people only. Here is the question: Will they ever be successful in a complete audit of 2011-2012? They have been promising audited financials since they joined in Q1-2011.
    30 Apr 2013, 11:28 AM Reply Like
  • mardom
    , contributor
    Comments (70) | Send Message
     
    Sad to see you stake your relevance on SA on one penny stock - that is a statement within itself.
    30 Apr 2013, 11:42 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7498) | Send Message
     
    You call it a penny stock. I called it an overvalued company in February when it had a market cap of about $300mm. Yes, I am happy to "stake my relevance" by exposing the financial issues and overvaluation issues, though I hardly think that's all I do on SA.
    30 Apr 2013, 11:51 AM Reply Like
  • jackdev
    , contributor
    Comments (19) | Send Message
     
    If I had any left then I'd sell today.
    30 Apr 2013, 12:35 PM Reply Like
  • teamdynasty
    , contributor
    Comment (1) | Send Message
     
    Very professional and clear reply to criticism. I feel even better about MJNA
    30 Apr 2013, 12:36 PM Reply Like
  • danicolorado
    , contributor
    Comments (7) | Send Message
     
    I think that investors are worried about the federal government shutting down marijuana once and for all, but legalizing marijuana makes too much sense! It helps the economy, gives drug dealers one less option, reroutes the police to other/actual crime, and has incredible health benefits for patients suffering from terminal diseases.
    30 Apr 2013, 12:36 PM Reply Like
  • jackdev
    , contributor
    Comments (19) | Send Message
     
    I'd like a response to Infitialis posting of 2/15:

     

    Ms. Michelle L. Sides - "Chairman" and Chief Operating Officer

     

    According to multiple Medical Marijuana filings, Ms. Michelle L. Sides is the Chairman of the Board, Chief Operating Officer, and also indirectly controls ~ 48% of the Company through her beneficial ownership of Hemp Deposit and Distribution Corp. In addition, she is purportedly a Member of the Florida State Bar Association and possess extensive experience in corporate and real estate law. Interestingly, the Florida Bar records for Ms. Michelle Sides indicate she was previously the "Corporate Counsel" and sole employee for "North American Companies, LLC," the same entity Mr. Michael Llamas purportedly founded and utilized to execute "in excess of ten billion dollars in transactions" for distressed debt. However, in reality, Ms. Michelle Sides has been kicked out of the Florida Bar for unspecified reasons (rendering her not eligible to practice in Florida).

     

    Simply put, it is hard to imagine trusting Ms. Michelle Sides with a library book, let alone as the lead manager for a $355mm publicly traded company. Unfortunately, for most retail investors in MJNA this is the first they have heard about this because Ms. Sides has fraudulently omitted this material information from her official biographies and disclosures.
    30 Apr 2013, 12:36 PM Reply Like
  • Mark2906
    , contributor
    Comments (4) | Send Message
     
    Maybe it is not true.
    30 Apr 2013, 02:03 PM Reply Like
  • UpInSmoke
    , contributor
    Comments (32) | Send Message
     
    Finally, someone calling the hard shots. Perlowin starts the company, brings in Sides and her criminal cohort Llamas (currently under indictment for fraud related to mortgage business with Sides as counsel, now forbidden to practice in FL as noted), board gets cleaned up with some quasi qualified people, and drumroll please......failed real estate investor Mona (from Vegas?). Straight out of central casting. This stuff is great. I love pot stock, but only real ones.Try TRTC.
    1 May 2013, 07:30 AM Reply Like
  • sergioalfa
    , contributor
    Comments (23) | Send Message
     
    I wonder if this small company can be acquired by a big Agri corp if its future is so bright.
    30 Apr 2013, 12:37 PM Reply Like
  • Stock Market Joe
    , contributor
    Comments (115) | Send Message
     
    Or maybe even a biotech company, especially if the trails are successful for the MedChewRX gum.
    30 Apr 2013, 03:02 PM Reply Like
  • Stock Market Joe
    , contributor
    Comments (115) | Send Message
     
    I think this is going to get even more interesting soon. Litigation against SA authors? The future will tell.
    30 Apr 2013, 03:05 PM Reply Like
  • UpInSmoke
    , contributor
    Comments (32) | Send Message
     
    Last time I checked it isn't against the law to speak the truth. Faith in pot and legalization doesn't have to be blind. Buy smart, plenty of good companies out there. Try TRTC!
    1 May 2013, 08:34 AM Reply Like
  • Managing
    , contributor
    Comments (252) | Send Message
     
    There isn't going to be any litigation. No way MJNA wants to go through discovery.
    Meanwhile, Michelle is no doubt selling shares today.
    30 Apr 2013, 03:46 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7498) | Send Message
     
    I have never heard from them. If I said something inaccurate, I would expect them to notify me. Plus, they actually corroborated what I said about their $4.5mm revenue recognition. That was sweet!
    30 Apr 2013, 03:49 PM Reply Like
  • Italian582
    , contributor
    Comments (2) | Send Message
     
    Hey Al, do you have any more bad stocks that went up 100% today, let me know, Thanks
    30 Apr 2013, 10:51 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7498) | Send Message
     
    Italian582, I started writing about this when it was .34 and it was .18 when I submitted my most recent article. You might also want to refine your math skills - the stock didn't go up 100%.
    30 Apr 2013, 10:54 PM Reply Like
  • UpInSmoke
    , contributor
    Comments (32) | Send Message
     
    Up from what? A dive of almost 50% in a week? I guess if a guy was a fortune teller he would be rich.
    1 May 2013, 08:34 AM Reply Like
  • papatooth
    , contributor
    Comments (4) | Send Message
     
    so why are you two going after a penny stock so hard. go after something with a little more weight. how much damage to people will be enough? you got the stock down to .12 and it bounced to .18 nice little take for you both i reckon.
    1 May 2013, 12:46 AM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7498) | Send Message
     
    You call it a penny stock. I call it almost $200mm. It's widely owned by small investors (>300K views ont the I-Hub board today), and I felt as though many didn't understand the financials. I deal with a lot of similar sized companies, but they don't employ such shady financial practices. If I find one, you can be sure I will "go after" it too...

     

    I have never had any position in the stock...
    1 May 2013, 12:59 AM Reply Like
  • CAS325
    , contributor
    Comment (1) | Send Message
     
    As of this week, the COO/Chairman Michelle Sides has registered to sell over 25 MILLION shares within the past 90 days. Obviously she is selling shares. I'm not sure how she stated in a 'shareholder update' that she has not sold any, although she could've sold immediately after typing that and not have lied. Let's not forget though, lying is not illegal. Regardless of when exactly she is selling the 25 MILLION shares she has already registered to sell, the important question is why? The obvious answer is no faith in the company stock price. So, why am I still holding my measly 10k shares...
    23 May 2013, 04:48 PM Reply Like
  • Alan Brochstein, CFA
    , contributor
    Comments (7498) | Send Message
     
    Tax write-off?

     

    It's hard to tell what's going on. The 144 gives her 90 days. The most recent filing is just under 1% of the shares outstanding. My guess is that she isn't lying and that the other two filings will not result in a sale. Now, these last 9+ million? Who knows, but if she does sell and they don't name a new CEO or add some directors, then the writing is on the wall.
    23 May 2013, 05:26 PM Reply Like
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