Medical Marijuana Inc (OTCMKTS:MJNA) Selling Like Hot Cakes
It seems that the medical marijuana companies are starting to liven up. After we talked about the very successful session for Growlife Inc (OTCBB:PHOT) it is time to say something about Medical Marijuana Inc (OTCMKTS:MJNA), who exploded in Friday, making a big jump in price on a volume that was well above their average of 3 million shares.
It seems that things are heating up on the medical marijuana front even without the help of promotional campaigns and promising press releases. That goes with full force for the stock of MJNA, who were the most traded medical marijuana company in the OTC Markets on Friday.
At first the trade session started normally and there was absolutely no movement in MJNA‘s price in the first half hour of the session. After that, however, the price started going up rather fast and the trades didn’t wait much to follow. By 02:00 PM they reached a peak of $0.196 per share, but it was short-lived and the company began sliding down.
By the end of the day MJNA closed at $0.1735, which was a healthy 39.92% jump from the previous day’s close of $0.124. The volume of traded stock was more than 10 times greater than their average of 3 million shares with a total of 37 million that switched hands in the end of the day, making MJNA one of the top 5 companies for the day in terms of its trade value, which was estimated at $6.1 million.
There were no significant press releases and no promotional campaign that can be “blamed” for the rapid increase in price and volume. Instead, MJNA was only mentioned in an article about medical marijuana, as a company that has benefited from the legalization. It was this that probably drew interest to the stock as the article was published right about the time at which the increase in price accompanied by heavy trading started and the probable reason for the investor interest was the fact that it was mentioned their stock was 200% up.
They might be 200% up, but from what perspective. If you check the long-term chart of the company you will see that they were at a big decline at the time the article was published and they managed to jump afterwards, but not with the big percentile movement that was noted.
MJNA are continuing to go in an upward direction today, after they gapped up and opened at $0.1925. They reached as high as $0.225, but deflated and are currently nested at $0.2023. The massive volume might be considered as a reason for the decline, having in mind that the total traded shares in a little over an hour come at 15 million. The trade value for the moment is also great and is estimated at $3.29 million.
Even though they are looking promising, they might “make up” for this big jump in price and plummet at any moment. This is why we advise that you do your due diligence and weigh out all the risks before jumping on their train.
A big “winner” in Friday’s session was Xumanii, Inc. (OTCMKTS:XUII), who went down 20% on a big volume of 35 million shares, closing the day with a price of $0.099 and a trade value estimated at $3.7 million. They are continuing their long downard run today with a further loss of 12% from their value and are currently nested at $0.087.