Medical Marijuana, Inc. (PINK:MJNA) Getting Back on Track

On Friday Medical Marijuana, Inc. (PINK:MJNA) traded a little above average volume and managed to close 3.5% up at $0.11 per share.

The company rode the upward current that all marijuana stocks caught in the wake of the U.S. presidential elections. Later however, all green leaf companies went through a bit of a hiccup, with prices cooling down and dropping near pre-election levels.

After a round of media appearances through its subsidiaries, it seems MJNA is getting back on the right track. Considering the company started climbing at around 6-7 cents a share, the current price is still good value. There is one important thing that separates MJNA from sector peers such as Cannabis Science, Inc. (PINK:CBIS) and Hemp, Inc. (PINK:HEMP). Unlike those, MJNA is actually turning six-digit quarterly revenues that result in net profit that is also a six-digit number.

MJNA spent the previous quarter investing heavily into consolidating their business and integrating various subsidiaries, as well as branching their products to new territories, most importantly perhaps into Europe. This chewed through an understandably large amount of the revenue that the company generated. These are the numbers from MJNA‘s most recent quarterly report:

• gross revenue $3 million, increased 20% from $2.4 million
• debt increased from $156 thousand to $585 thousand
• net income shrunk roughly 20% from $1.47 million to $1.19 million

The increase in expenditures is obvious as the 20% increase of revenue did not manage to make up for costs and net income was down. This is hardly a bad sign as the company spent the money on growth, which should logically start paying back over the next quarters.

Last week MJNA announced that one of its subsidiaries which produces hemp oils, the company’s largest source of revenue, will be able to distribute its raw ingredients to other manufacturers and nutraceutical businesses as well.

With the stock stabilizing in price and the company reinvesting into its operations, MJNA may be the most reasonable point of entry for those who just have to get into the publicly traded marijuana stocks circle.