Medican Enterprises Inc (MDCN)

[DaBomberLee]

Positive-10K In-depth Analysis

This was a better 10K than I was expecting for a company that is still a start-up and recently added New Mexico's governor just a year ago as a director.

This is a start-up company so we all know they aren't generating revenues yet. The unexpected thing about the 10K was the fact that one of their deals will bring in immediately income because there is already someone licensing it.

"On January 20, 2015, the Company entered into a purchase agreement to acquire a 7,200 square foot retail and commercial property in Phoenix, Arizona. The property is currently leased through August 2018 to an Arizona state licensed medical marijuana dispensary. Per the purchase agreement, the lease agreement will be assigned to Medican. The rental amount of the current lease is in excess of $200,000 annually, triple net. The lease provides for two five-year tenant renewal options."

The fact that, the lease will still be attached means that the deal is essentially closed. They have already decided that the remainder on the license contract will be assigned to Medican. This is really good news.

Also, on the debt that company has incurred, it is mostly calculated based off the market price of the shares at the time, hence the company isn't doing that bad at all.

Plus, as we can see, the deal is done on the big property.
"The Contract is set-in" This means that we just have closing left to do, as anyone who has purchased property before, it usually takes a month or more to close escrow.

http://www.loopnet.com/Listing/15609436/3839-N-35th-Avenue-Phoenix-AZ/?MPID=ARZ9MDt3g&SRID=5624699622&tab=Sale-Lease&PgCxtGuid=d23668ae-1ebc-4003-91ac-eeab6c66bccc&PgCxtFLKey=&PgCxtCurFLKey=PropertyRecord&PgCxtDir=Down

At only 0.019 cents a share, this company is still easily undervalued. I'm expecting the price to go up tomorrow. There might be some people trying to short this stock, but it will definitely close up.

Not to mention President Obama's support for reclassification of marijuana is some really great news.

This stock should be bought.