Medical Marijuana, Inc. (OTCMKTS:MJNA)’s Run Interrupted
After a third brief attempt at recovery, in yesterday’s session the share price of Medical Marijuana, Inc. (OTCMKTS:MJNA) ran into foul weather and dropped a little over 5%, stopping at $0.20 by the closing bell. Volume was relatively heavy, at 6.7 million shares changing hands.
As the marijuana sector got gradually filled with new contenders over the last few months and as MJNA crashed from $0.34 to $0.18 per share, the ticker may have lost some of its former appeal. The fact that MJNA‘s quarterly report is now more than two weeks late is not doing the company any favors either.
MJNA published a notification of late filing on May 15, extending the deadline for the Q1 report by May 20. The report is still missing and as a result MJNA has been stamped as a Pink Limited Information company. MJNA usually manages to furnish its reports in a timely manner but this delay doesn’t seem to have unsettled traders.
Discussion boards are brimming with optimism despite the lack of current financial information and the less-than-stellar annual report. Here is what MJNA had to show as of December 2013:
- $481 thousand in cash
- $1.3 million in liabilities
- $5 million in sales for 2013
- $211 thousand in net ordinary income for 2013
- $24 million in 2013 net income after extraordinary items
We have discussed the huge discrepancy in net sums before and after extraordinary items and the source of the difference – the Phytoshpere sale and shares acquired from CannaVest (OTCMKTS:CANV) as payment. The fact of the matter is that without Phytoshpere, MJNA‘s bottom line of $211 thousand in operating income is just not too inspiring.
Traders seem to believe that a new surge is starting to happen across the pot sector and it will sweep MJNA back up. There are no real signs suggesting something like that is about to happen. As a matter of fact, MJNA banged against its 50-day moving average right before dropping yesterday. With no PR announcing Q1 results ahead of the filing – a practice MJNA seems to like, and with the report itself delayed, traders might be in for a surprise once the figures are out.
Terra Tech Corp. (OTCMKTS:TRTC) was the most heavily traded marijuana stock on the OTC Markets yesterday, moving a dollar volume of $5.4 million. Despite the large volume shifted, TRTC closed nearly flat, 0.02% up at $0.65 per share.
