Heightened Interest in Medical Marijuana Inc. (OTCMKTS:MJNA)
After the attention created by the CNN documentary on medical marijuana in which we saw Dr. Sanjay Gupta changed his opinion about the medicinal use of cannabis we see another increase in the search for such stocks. Medical Marijuana Inc. (OTCMKTS:MJNA) is one of the top traded tickers in the industry and it’s no wonder that they are at the top of the hype.
You may ask yourself what has caused so much attention in the medical marijuana stock market in the end of the past week. The answer is simple. The U.S. government has finally taken the long awaited decision to stop the federal prosecution of marijuana in the states that have allowed its use, both for medical and recreational purposes.
The decision went public on August 29 and marked an instant increase in the trading of several medical marijuana stocks. The stock of MJNA in particular jumped 49% in Thursday’s session on 5 times its average volume with a total of 49 million traded shares.
The day started relatively quiet with few trades and a price of $0.128 per share. That, however, quickly changed when the news came and the price rocketed on increasing volume. By the end of the day it had reached $0.1949 and the increase in price, combined with the heavy trading managed to generate a trade value of $7.8 million for the day.
In Friday the ticker started off even better, as it gapped up and opened at $0.2197. In minutes it peaked at $0.24, but the heavy dumping pushed the price down and the rest of the day went quieter.
By the end of the session the stock had lost 18.98% of its value and the volume was even higher than the previous day’s. As the ticker closed with a price of $0.1579 the total amount of shares that had switched hands came at 59 million, which helped generate a trade value estimated at $11 million.
We reckon that things will go on like this in the next several days, but will quiet down, just like it happened after the CNN documentary. Be sure to do a lot of due diligence and weigh out the risks if you have set your eyes on investing in any medical marijuana stock.
Another company from the industry that stood up in Friday’s session and was in the top of our list of most traded stocks was Hemp, Inc. (OTCMKTS:HEMP). Even though they bombed 32.08% in Friday the 119 million shares that were traded made up for a hefty $2.45 million in dollar volume.
Other OTC companies that benefited from the increased interest in medical marijuana stocks and are trading with full force include Growlife Inc (OTCBB:PHOT) and Cannabis Science Inc (OTCMKTS:CBIS).
