Medical Marijuana, Inc. (OTCMKTS:MJNA) Logs Lowest Volume Day in 2014
After a wild run that swept just about every OTC ticker related to marijuana, Medical Marijuana, Inc. (OTCMKTS:MJNA) cooled down further and logged its lowest share volume for the new year so far. The ticker still remained among the top 10 most heavily traded OTC stocks in terms of dollar volume and shifted 18.7 million shares.
The markets are still engulfed in the green fog that the first recreational marijuana sale in the state of Colorado unleashed. Share volume for all marijuana-related tickers is still through the roof and far greater than their last quarter’s average. Looking at MJNA in particular, this sort of frenzy is comparable only to the spastic movement of early 2013. A quick look at the charts shows how well that panned out.
The company’s latest press release dates back to late last week and informs of a rebranded product line and the launch of hemp oil in the form of capsules. Perhaps it’s worth mentioning again that MJNA is not involved in the sale of THC-rich marijuana products but is working with CBD-rich ones instead, CBD being the medically viable, non-intoxicating extract of the plant. This aspect makes it difficult to understand why MJNA, among other companies that are not related to THC-rich recreational products, is suddenly churning share volumes in the tens of millions.
At the very least, MJNA‘s share price managed to remain far less volatile than many other same-sector tickers. Companies such as Tranzbyte Corp. (OTCMKTS:ERBB), Hemp, Inc. (OTCMKTS:HEMP) and Cannabis Science, Inc. (OTCMKTS:CBIS) went through far more violent percentile swings over the last couple of weeks. This volatility was expected as such movement is very difficult to sustain, even when the ticker in question is not moving on excitement alone.
MJNA displayed intra-day volatility over the past few sessions but it’s still slowly inching up, likely due to the fact that, at least over the first half of 2013, before the disappointing quarterlies came, it managed to build a reputation as one of the safer bets in the field. In light of the latest report filed, listing a negative net ordinary income before stock income is factored in, MJNA may have lost some of its appeal but it’s obviously hot enough to have people swarming around it.
Traders are still advised to do their own research and weigh the risks involved very carefully before dipping a foot in the boiling sea of green.
