Medical Marijuana, Inc. (OTCMKTS:MJNA) Continues Climb

Medical Marijuana, Inc. (OTCMKTS:MJNA) climbed nearly 10% yesterday to log its third green day in a row after a series of tumbles. The stock went up just a little over 40% in just three short sessions, shaking off the slip that brought it to its lowest close of 2013.

Yesterday’s move happened on heavier share volume, with over 11 million shares changing hands. Excitement levels ran up once again, as heavy volume returned to the stock, this time on an upswing. The move appears to have been driven largely by momentum and agitation, as there have once again been no filings or press releases coming from MJNA.

The spirits of discussion board frequenters were lifted once again as the stock started making an attempt to recover its position. Esctatic commenters are once again forecasting that share price will hit $2.00 next year. Others are predicting $0.20 as early as today’s close. Such unbridled optimism may show dedication and firm belief in the success of MJNA but it’s hardly based on anything substantial.

Long-term MJNA supporters surely remember the February movement of the stock price as well as of the entire green leaf sector. Excitement and hype over MJNA‘s possibilities and performance saw the price climb in leaps and bounds – much faster for reality to keep up, and then came the crashes, with MJNA losing whole dimes off its share price in single sessions.

The Phytosphere transaction which saw MJNA offload what was essentially its biggest revenue engine into the hands of CannaVEST Corp. against shares that many will consider grossly overpriced, is still a bothersome factor about MJNA‘s overall business plan. We have previously discussed this move as a possible backdoor for MJNA to grow its raw product through an external body and avoid possible legal issues on a federal level. Still, the successful closure of the CannaVEST deal would mean MJNA obtaining enough of their shares to become a majority owner.

Hemp, Inc. (OTCMKTS:HEMP) who went through a rough patch in June surged 20% in yesterday’s session, assisted both by a press release about the developments around their hemp crop in China and possibly by the strong moves of MJNA over the last couple of days.

MJNA remains a highly speculative trade and there’s no real way to tell whether the upward momentum it gained is going to persevere or whether there will be a reversal that will pressure the price back down.