Medical Marijuana, Inc. (PINK:MJNA) About to Drop the Ball?
Yesterday Medical Marijuana, Inc. (PINK:MJNA) experienced another hiccup and closed nearly 10% down, at $0.289. Volume increased from the previous session and sat at a little over 31 million shares.
The tension around the stock seems to have escalated with accusations being thrown at the company, investors possibly panic selling in their wake. While the rampant Friday landslide has somewhat stabilized, the stock failed to stop its downward movement yesterday, logging a third red day in a row, now sitting about 35% below its Thursday close.
The new dip in price stopped at about the same level as the one from a couple of weeks ago, which may give some investors the idea this is a support line for the stock. Using technical analysis on a volatile penny stock, whichever it may be, is not the best idea and MJNA has to an extent traded on sector excitement.
It remains to be seen whether a sufficient number of long believers will help MJNA back up, as the new dip is an obvious opportunity for everyone who firmly believes in the company to load more shares. This claim was made before by people who avidly supported the stock and now it may be up to them again to somewhat stabilize share price. Failure to offset the heavy selling could see MJNA flail past what some perceive as resistance and continue further down. Of course, only time can tell how things will pan out, as the stock has given plenty of indications that its movement is very hard to predict – something we’re not aiming to do either.
MJNA‘s Tuesday release of 2012 results and two-year future guidance did not exactly have the results investors hoped for. Considering the stock once surged on the pre-announced Q4 results, ahead of the Feb 8 official filing, it’s somewhat strange that the eagerly expected first-ever guidance that predicts some stellar figures couldn’t lift the stock.
The annual report also contained some bothersome details regarding the sale of MJNA‘s hemp oil inventory – a deal for $35 million. The buyer was revealed to be paying in shares and not cash, an important detail considering the $5.00 shares are of an OTC company that recently changed its name to CannaVEST and is expecting a ticker symbol reassignment from its current FCLS, and that had $163 in total to its name as of September 2012.
Other marijuana stocks once again followed suit, trailing MJNA‘s movement. Hemp, Inc. (PINK:HEMP) closed over 8% down and Cannabis Science, Inc. (PINK:CBIS) slipped 10%.
