Medical Marijuana, Inc. (PINK:MJNA) Strides Forward
Yesterday Medical Marijuana, Inc. (PINK:MJNA) landed in the top 3 most heavily traded penny stocks. MJNA shares gained 28% over the last session and the company closed at a new 52-week high, at $0.224 per share.
MJNA happens to be one of the relatively few pink sheet stocks that manages to move up on the charts and show respectable performance in their financial reports without the need for pumps and email promotions. The last three months saw MJNA reach as little as $0.08 per share in the end of November. After a more volatile December, the stock enjoyed a mostly steady climb in January, culminating in this week’s run from $0.14 to $0.22 per share.
The company has also kept away from beating its chest through loud PR announcements, despite the steady rise in price. MJNA recently received coverage in the LA Times, through its subsidiary – Dixie Elixirs, whose facilities and warehouses were photographed as part of an article on medical marijuana and its expanding industry.
MJNA‘s financials as of the end of September as per their filing were as follows:
- $3.6 million in cash
- $624 thousand current liabilities
- $3 million in total revenue
- $1.19 million in net income
The company announced its expectations for Q4 results ahead of the report. After a shrink in income of about 20% from Q2 to Q3, now income is announced to be as much as $3.39 million, a significant step up from the previous quarter, on gross revenue reaching $5.1 million. Traders could of course wait for the official public filing of the numbers in the next report but it looks like MJNA is doing reasonably well.
The company also stated its intentions to go for an extensive audit procedure stretching 24 months back, both to increase investor confidence and as part of an uplisting effort. This is a claim made by other pink sheets in the past and one that the companies rarely follow through on, but if MJNA achieves it, it will be a commendable move.
Traders should, of course, keep in mind that MJNA still remains a pink sheet penny stock and is subject to volatility and swings in both directions.
