Medical Marijuana, Inc. (PINK:MJNA) Contains Drop
In yesterday’s session Medical Marijuana, Inc. (PINK:MJNA) shrugged off the vertigo it got into after running as high as $0.50 intra-day earlier this week and managed to close 16% up, inching above $.30 per share once again.
The stock opened the session down from its previous close and after struggling on large volume in the morning hours, it went to recoup its levels and climbed as high as $.35 around noon. The fluctuations over the day were not too large and the stock seems to be still stabilizing after the huge spikes and dips from the previous few sessions. Volume remained above the 30-day average, fading a little from the previous session but still at nearly 24 million shares.
The news concerning medical marijuana keep popping hourly in various outlets. Legislators in DC are reportedly looking into levying taxes on medical marijuana similar to those imposed on recreational marijuana products. In Oregon a bill is seeking approval, proposing the use of medical marijuana to treat post-traumatic stress disorder as the plant allegedly works better than anti-depressant treatments. New Jersey’s only medical marijuana dispensary is reported to be badly understocked, creating growing unrest in patient card holders who cannot get the prescribed treatment.
Investor sentiment on discussion boards swung back to a general optimism after MJNA closed 16% in the green yesterday. The company has not published any press releases to hype things up but it hardly needs to as the general euphoria around cannabis stocks is still strong. How healthy this euphoria is for the performance of the companies on the charts is a different matter. It was probably an overly eager wave of investors that caused the huge surge and subsequent drop in MJNA price – movement that happened way too fast for its own good.
Traders are still looking toward next week when MJNA is expected to release audited Q4 information. A fully audited report that mirrors the figures announced by the company ahead of the filing of over $3 million in income on generated revenue of over $5 million will probably be a catalyst for more activity around MJNA.
Hemp, Inc. (PINK:HEMP) and Growlife, Inc. (OTC:PHOT), as well as other marijuana stocks once again mirrored MJNA‘s chart movement, matching it hourly, giving the impression that some trade the sector as a whole, regardless of the individual performance of separate companies.
Despite the relative containment of the swings in price, MJNA remains a penny stock and is still subject to inherent volatility. Traders are advised to exercise caution and do their own due diligence before investing in any stock.
