Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

There's so much wrong in that Benzinga article

So much wrong, and such bad research on Johnny Duncan's (the author) in that Benzinga article.

Here are the major errors from paragraphs three and four:

1) MJNA grows and sells marijuana

For investors though, Medical Marijuana, Inc. can be seen as akin to a pot mutual fund in that the company owns various sectors of the marijuana market including the growing and selling of it as well as the peripheral side streets of marketing and management support.

MJNA may, with its once-ownership of Red Dice Holdings, have once had an indirect (and non-revenue earning) role in the growing and selling, but with the dissolution of the venture with Dixie Holdings, and the loss of Dixie Elixirs, MJNA has no presence in the marijuana (THC) space.

2) CanChew had sales growth in 4Q/13 from 3Q/13

Under its CanChew Biotechnologies segment, the company posted fourth quarter sales of $58,000, up from $34,000 in the third quarter.

While that's what the reports said, what the author didn't notice (because he didn't look hard enough at the reports,) was that the $58K reported in 4Q/14 was consolidated revenue, while the $34K reported in 3Q/13 was MJNA-only.

As I showed in a post on May 5, 2014, the 3Q/13 consolidated revenue for CanChew was actually $67,774 (not $34K, and so the 4Q/14 revenue was down 15% from the third quarter. In addition, the author failed to mention that the 1Q/14 consolidated revenue for CanChew was approximately $48K, down another 17.2%, sequentially.

3) Red Dice Holdings is the owner of Dixie Brand

Red Dice Holdings is also the owner of Dixie Brand which includes Dixie Botanicals that provides 70 unique consumer products.

Apparently, Mr. Duncan never noticed the press release about MJNA losing Dixie Elixirs (the vast majority of the 70 unique consumer products) in the arbitration with Dixie Holdings.

4) Used 2013 EPS (that included CannaVest payments,) rather than the 1Q/14 EPS.

Currently, MJNA has a diluted EPS of 0.03 and the need for diluting is negated by the increase in quarterly earnings (142% year-over-year), and strong or growing foundational numbers.

While net income for 2013 (including the value of shares from CANV) was, with rounding, $0.03/share, EPS from operations was only $0.0002

The 1Q/14 EPS, which had no contribution from extraordinary income, was only $0.000025.

Overall, a very sloppy article, or one meant to pump the stock.