Medical Marijuana, Inc. (OTCMKTS:MJNA) Drops to 30-Day Low

The early 2014 marijuana explosion sent Medical Marijuana, Inc. (OTCMKTS:MJNA) through the roof, just as it did about every other pot-related ticker on the OTC. MJNA retreated after the original rush but still managed to find a nice landing spot at around $0.30 per share, well above its late 2013 price levels, where it struck a balance and remained mostly level. However, this period of calm seems to have come to an end after the company filed its annual report.

The long-expected filing was made public last Thursday. However, it seems to have had an adverse effect on MJNA‘s share price. The ticker is about 12% down from its closing price before releasing the report, after two consecutive red sessions that were also the biggest daily drops for the last six weeks. Those fond of looking at indicators and charts would probably note that MJNA slipped under its 50-day moving average for the first time after the January surge.

There seems to be a sufficient level of support from MJNA longs if online trading discussion boards are anything to go by but the charts tell a different story. It seems people were, on the whole, displeased with the figures and information posted in the company’s annual report. Here is the brief numbers rundown:

• $481 thousand in cash
• $1.4 million in Q4 sales, $5 million for 2013
• $45 thousand in Q4 net ordinary income, $211 thousand for 2013
• $5.2 million in Q4 net income after extraordinary items, $24.6 million for 2013

While HempMedsPX, MJNA and Cannavest Corp.’s (OTCMKTS:CANV) exclusive distributor and marketer, displayed admirable QoQ revenue growth, the bottom line was very thinly spread net income before extraordinary items (CANV share payments) are factored in. CANV share payment tranches totaled $35 million and per-share prices were collared between $4.50 and $6.00. At the same time CANV is currently trading on the open market at $38 per share. A Forbes article mentioned that CANV also considers a private placement of stock at $1.50 per share. Traders should decide for themselves which of those price levels is realistic.

Other big pot stock movers in Friday trading include Tranzbyte Corp. (OTCMKTS:ERBB) who shuffled up again, closing 29% in the green. Growlife, Inc. (OTCMKTS:PHOT) commanded a large dollar volume but closed nearly flat, just shy of 1% up.