Medical Marijuana, Inc. (PINK:MJNA) Gets More Media Attention

On Friday, Medical Marijuana, Inc. (PINK:MJNA) closed nearly 1% down but still remained above the $0.10 dividing line, settling at $0.109 per share at the bell.

Last Thursday Red Dice Holdings, a MJNA subsidiary, made the spotlight again and was features in a CNN segment covering the newly enacted marijuana legislation. Red Dice’s CEO also appeared on air on Fox News over the weekend.

MJNA went through some difficulties in late November, slipping down to $0.08 per share, a serious blow after closing at almost twice that much in the immediate wake of the U.S. 2012 elections hype. The stock price looks like it’s settling in at around 10 cents now, while MJNA plods on.

In fiscal Q3 the company spent a lot of its money on a lot of activities, including growing and better integrating its subsidiaries and brands, as well as setting up early operations in Europe. The spending showed when MJNA filed its latest quarterly report. The figures showed the company chewed through a lot of cash during the three months:

• $3 million in gross revenue, 20% up from $2.4 million for Q2
• liabilities increased to $624 thousand, up from $195 thousand in Q2
• net income is down about 20% at $1.19 million, down from $1.47 million in Q2

Revenue was up by a solid 20% but in the end net income shrunk by the same percentage. This should not necessarily be read as a bad sign as the company spent the money growing its business across its portfolio. If MJNA manages to keep up the growth of revenue and successfully contain expenses over the current quarter, investors may be looking at much better results.

MJNA is one of the few OTC companies that deal in marijuana products. However, it has a business that is both real and profitable – something that may be a bit of a stretch to say about Cannabis Science, Inc. (PINK:CBIS) and Hemp, Inc. (PINK:HEMP). 

MJNA, logically, crops up a lot more often among the most heavily traded OTC stocks – a sign that investors may actually be checking a company’s performance and filings more and more often before they put their money into it.