Medical Marijuana, Inc. (OTCMKTS:MJNA) Spearheads Sector Hype, Volume Swell
With the first legal sale of recreational-use marijuana in the state of Colorado on the first day of the new year, the race is on. The slow price and volume swell that started over the last two sessions of 2013 for Medical Marijuana, Inc. (OTCMKTS:MJNA) and pretty much every other company in the sector exploded into full-blown frenzy yesterday.
MJNA managed to move more shares over the last session that it did in its highest volume day back in February last year, when it was making its big but short-lived breakout. The ticker shifted 82 million shares yesterday, closing 22% up. MJNA headed the whole marijuana stock pack in terms of dollar volume, generating a whopping $15 million worth of trades over a single day.
In MJNA‘s case, investors once again decided to ride the hype and load up simply because the company has the word ‘marijuana’ in its name. Surely, this means it’s guaranteed to make investors rich, now that you can buy recreational! Well, no, it doesn’t. MJNA is not really in the business of selling THC-rich products, which is what recreational-use primarily consists of. The company has hammered it home repeatedly that it’s focusing on CBD (cannabidiol) products, i.e. on products derived from the non-intoxicating compound of the plant.
As another stock article outlet already outlined, the fact that Colorado now sells recreational-use marijuana does not equal country-wide federal legalization and MJNA has repeatedly stated that it does not sell or distribute products that violate the U.S. Controlled Substances Act.
The surge is affecting other stocks that are involved in the marijuana sector in one way or another. Yesterday’s 15 most heavily traded OTC stocks included MJNA, Growlife, Inc. (OTCBB:PHOT), Cannabis Science, Inc. (OTCMKTS:CBIS) and Hemp, Inc. (OTCMKTS:HEMP) – all the usual suspects that were once again glued together in the February 2013 green rush.
Investors eyeing those same tickers now would be wise to take a look at how the situation panned out for all of those stocks a couple of months down the road from February 2013 and weigh their options carefully before throwing money at them.
