Medical Marijuana, Inc. (PINK:MJNA) On Fire, Closes Week 36% Up
On the first trading day of February Medical Marijuana, Inc. (PINK:MJNA) continued its run up the charts and closed another 36% up at $0.30, briefly peaking to $0.35 in the morning hours. The stock saw unprecedented activity, with nearly 58 million shares changing hands.
The recent media coverage in the LA Times that MJNA received through its Dixie Elixirs subsidiary, combined with recent news that U.S. legislators are once again trying to push a medical marijuana legalization bill may have helped the stock move up. Marijuana proponents are trying to use the momentum gained by Washington and Colorado and press country-wide, including Hawaii’s House Bill 699 that was presented last Friday.
MJNA has made significant strides forward according to its announcement of Q4 results ahead of their official report. The company announced expected income of over $3.3 million, on revenue reaching over $5 million. This is refreshing news after MJNA‘s Q3 20% dip in income despite the increase of revenue. With Dixie Elixirs receiving national media exposure and MJNA‘s oil-producing subsidiary PhytoSPHERE reportedly producing as much as 550 million milligrams of hemp oil, MJNA may well be on the track to success and growth. Investors can of course wait for the company’s official filing to see confirmation of the reported results.
The company’s run may also have been assisted by its announcement of plans for 24-month auditing in an effort to move away from pink sheet non-standard reporting and uplist. MJNA have not come up with any other major news releases immediately before the 36% surge.
Other marijuana stocks also moved up in double digits, possibly using the momentum of industry news and the performance of MJNA. Hemp. Inc. (PINK:HEMP) managed to close Friday 34% up and reach $0.045 per share. According to its latest report, HEMP is still next to cashless, and the report sports a quarterly dilution of common stock of about 12% or 100 million new shares.
More interestingly, HEMP recently announced a new spinoff – YourBev, Inc. – a company that is going to provide customers with structured hexagonal water solutions. That would have been a commendable move if ‘hexagonal water’ was not widely regarded as a marketing scam, demystified by both scientific journals and popular sources such as Wired magazine.
Traders should keep in mind that while the euphoria may keep marijuana stocks at their current levels or even help them inch higher, those are still penny stock and are subject to a volatility that can cause a significant swing down at any point.
