Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

Every state that passes, one less for RSHO

What you're saying is so true. For every state that legalizes medical marijuana, that's one more state where RSHO is not even remotely competitive in price.

The recent Time magazine article that you posted a week ago, Pot Kids, makes that abundantly clear:

He was so impressed with the results he decided to go into business with the Stanleys. Mirzabegian became their first licensee outside of Colorado.

Mirzabegian now has his own facility, and the oil he gives Emily is from the plants he grows himself; he sells the rest to parents who visit his office. Demand for Mirzabegian’s product is fierce, with a waiting list of 1,000 families. Although other dispensaries sell CBD-rich oil and charge prices that can run into the thousands of dollars per month, Mizabegian charges 5 cents per milligram of CBD, with dosages that vary based on the child’s weight. He says he is not yet turning a profit.

Among the patients who came to Mirzabegian’s office on the days I visited was the mother of a severely developmentally delayed 5-year-old boy who weighs 20 pounds. She paid $65 for a month’s supply of Charlotte’s Web. There was also a single mother who lives in fear that her son’s doctor, who opposes the use of medical marijuana in place of pharmaceutical drugs, might report her to child protective services. The boy has intractable epilepsy and severe cognitive and physical delays. “There’s no quality of life. This is like living death,” the mother says later. “He’s so beautiful and sweet, but it’s just heartbreaking.”

Now granted, Mirzabegian will probably need to charge $0.06 - $0.07 per milligram to make a profit (that's what the Stanleys are charging in CO, IIRC,) but that one-fifth of the $0.33/mg for RSHO.

Frankly, I don't understand the "love" for a company that both financially performs as poorly quarter after quarter and repeatedly disrespects shareholders the way MJNA does.

Considering Hempmeds falling-out with CannaVest and the fact that KannaWay's comp plans sound more and more desperate, I think there's a real good possibility of a sequential revenue decline in 3Q/14 from 2Q/14, perhaps to $3.4M - $3.7M and another $900K - $1.1M operating loss.

Ad in an increase in outstanding shares to maybe as many as 1.2B, and MJNA would be extremely overvalued at anything over $0.13 (it would still be quite overvalued at $0.11, but logic doesn't seem to work with this stock).