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I doubt it acrylic
Despite what has been said here, institutions cannot invest in businesses profiting from controlled substances. Check the control substances act. And profits made from federally illegal operation can be seized by the government.
It has nothing to do with SA articles, manipulation, planned insider sales......it is what happens when a stock goes parabolic. MJNA went from .03 to .50 in a few weeks. The stock will retrace often to Fibonacci levels. Starting at the base of .09, a fibonacci retracement of 66% from the .50 would put the stock at .22. The gap at .18 has been beckoning ever since .50 failed to hold on the second push in February.
Thanks Doc
Cool pics and good to see the Facebook activity. Before the Cup I posted a message here that some friends from a media outlet were covering the Cup and I talked to them about MJNA. One of those buddies worked for NatGeo but he asked me not to post anything before the Cup to avoid any issues. I can't believe the whole time I was spewing to him about MJNA he was going to talk to one of the ringleaders!!!!! When he gets back, I can't wait to hear his impressions
Hey Doc can you post a screen grab?
Of Tripps Facebook post. I'm not on FB and the link didn't work on my iPad
Looks like Snoops Holding a Bleezy
Check his left hand
NICE CLOSE
Solid white candlestick. Not technically a "bullish engulfing" candlestick but it covers the open and close from the previous day.
http://stockcharts.com/h-sc/ui?s=ERBB&p=D&yr=0&mn=4&dy=0&id=p51666992872
I highly doubt your story
My ETrade and Merrill accounts are both margin accounts but I can only short with the ML account because of my status with the company. And you're claiming to do this with penny stocks? Sorry but that is a load of BS
You don't use any funds to short, but 99% of retail brokers, Suretrader included, do not let retail traders "naked" short a stock, meaning you cannot short a stock you do not already own. For example, if you don't own any AAPL shares, you cannot short the stock. I own xxx amount of AAPL shares, therefore ETrade will ONLY allow me to short the same xxx amount of shares or less. Plain and simple. Naked shorting has been seriously curtailed since 2008. You or your broker has to own the equivalent shares in order to borrow them for shorting.
I have been trading for over a decade and seen repeated stories like yours. Nice try. Move along
Chart also shows a potential double bottom @.185
The weakness came back in February when the second test of .50 failed.
Today is actually remarkably strong. I would have guessed the dip down to .185 would have triggered a wave of selling from weak hands and folks protecting profit. In fact, it went the other way, showing support for the first time in weeks bouncing strongly off .185 with high volume
Curious what platform are you using to short
Because despite having a sizeable chunk of MJNA shares to borrow against, my broker at Merrill was the only one who allowed me to short against my own holdings. I have another large position with ETrade but they will not let me short, even against my own shares.
You also stated that you "sold all at .26 and opened short postion".
That would imply a "naked" short position which I highly doubt you are capable of placing considering most brokers don't let retail traders open naked equity short positions.
Please clarify
ERBB Most Undervalued MJ Stock on the Market
Vending machines? Got em.
Product? Got it.
Dispensaries? 2 and more coming
Direct to consumer MJ sales? Happening
ERBB is valued at less than $3.5m!!! The 2 dispensaries alone should be worth more. Here in CA the premium clubs make as much as $1m PER MONTH and the average is around $200k/month.
MD*X has a $450m market cap. Yes, that company has far less outstanding shares but the MD*Xs value is almost entirely intrinsic as the company has yet to realize the business model. MJ*A has a $150m market cap. Based on "comps", ERBB should command a much higher market cap.
@$50m market cap, ERBB should be around .03/share
@$100m market cap, ERBB should be around .07
@$250m market cap, ERBB should be around .20
@$400m market cap, ERBB should be around .37
All very achievable numbers and hopefully numbers we can look forward to
On the wild speculation side, when MB*X was at its 200/share peak, the market cap was around $2b.
@$2b market cap, ERBB would be $1
Folks AG Holder CANNOT CRACK DOWN NOW. PERIOD
Medical marijuana has been sold at retail locations in California since 2003. The movement has taken a deep root in the economics of the state. Colorado is experiencing a boom of a new business, revitalizing small towns like Durango, a place where commercial real estate was struggling until dispensaries filled the empty store fronts.
Nearly half the states have a legal form of medical marijuana with 2 even legalizing for recreational use. Cannabis has support from both parties. The Republican's should be particularly interested because the state legalization issue goes to the heart of the conservative "states rights" stance, and if the Fed comes in to strike down initiatives voted on and passed by States, the Reps should be calling foul on the "Big Government". The expansion of marijuana and hemp could lead to a resurgence for the Heartland as a new cash crop would be introduced.
Regardless, it would be a really bad move on AG Holder's part to start cracking down now. 10 years ago when the movement first started, maybe, but now its too far. I guarantee I would be up in arms, protesting and exploring every legal option I could against the government and I also guarantee I would not be alone. Patients, NORML, Patients For Safe Access, politicians, activist lawyers, shareholders are just a few of the folks who would be comping at the bit to sue Big Brother
Browland Please Clarify
Do you have anything to support this claim other than bold capital letter? The number you provided will not disclose the information.
I tried to get my 100k @ .18
But MJNA never dipped below .185. My guess is we see that number again although a possible double bottom has now been set up on the chart. Provided MJNA can keep above the .185 mark hit back in late March there could be a technical bounce in the works. Technical analysis isn't always applicable to penny stocks because they are not as liquid as common traded stocks and there are not HFT machines trading based solely on chart patters as with AAPL.
Vending Machine Speculation
I don't know about health food stores, maybe some of the drinks and foods, but I would think the real expansion would be a liquor store. You have to be over 21 to be in a liquor store in most states and driver's licenses could be used for ID purposes.
Vending Machine Speculation
I don't know about health food stores, maybe some of the drinks and foods, but I would think the real expansion would be a liquor store. You have to be over 21 to be in a liquor store in most states and driver's licenses could be used for ID purposes.
Totally Speculative Fundamental Analysis Based on "Comps"
Because ERBB is not a fully SEC compliant company, it is difficult to ascertain the Company's fundamental condition based on a lack of hard numbers and financial reports. Not only is fundamental analysis challenging, technical analysis is equally as skeptical because the stock does not trade with normal liquidity. Some days volume and price action are smooth whereas other days it can be choppy with long intraday trading lulls. In an effort to offer at least some analysis on ERBB, one interesting way to understand the company is by comparing it to other companies, similar to how real estate markets measure property values by "comps" or values of similar properties in the same area.
Based on that analysis, ERBB is a gem that has yet to realize its full potential. ERBB is getting into the ever popular MJ vending machine business. One of the main differences between MD_X vending machine sales is that ERBB has actual product to put in the machines, therefore increasing product distribution and brand exposure as well as licensing revenue. Should these projections be realized, ERBB could be a sensation. While MD_X has a substantially lower share float than ERBB, MD_X market cap is nearly 100x that of ERBB. At a meager $4m market cap, should ERBB start making some decent coin from operations, there could be a large share price gain.
If ERBB had a market cap of $100m, that would put the share price around .10pps
A market cap of near MJ_A would be $240m or around .20pps
And a market cap of near MD_X ($450m) would be over .40pps
Those are lofty numbers but at such an insanely low price, BELOW A PENNY. The investment is highly speculative and not recommend for margin trading, but if you can hold until there is a good pop, ERBB could just be a lotto ticket worth a few 1000% gains. Of course, it could also be as bad as an investment as a lotto ticket so do your own DD.
Note: I am long ERBB, MJNA, no position in MDBX
I'm stuffing the cannon
Loading up on dry powder. I'm shorting AAPL puts and depending on the next 24 hours, I will use any profits to get ready to buy MJNA should it hit .18
I will buy
100,000 @.18
and
250,000 @.09 (if it happens)
Candy, gum, soda pop, tinctures, salves
"Nothing special"
The government does not seem to share your same opinion. There must be something "special" about them if the government spends billions of dollars enforcing and developing propaganda to outlaw the use of the products.
And customers must think there is something "special" considering the company appears to be making money.
Nothing can replace smoking or vaping
But that is for those who have been doing it for years.
I enjoy smoking and vaping, but I also get the THC lozenges. They are great for travel, for golf, for an all day buzz when around family or perfect for a movie.
Also, people new to recreational marijuana are likely to use drinks and edibles. Smoking has carried a negative stigma over the past few years, and non-smoking users would probably much more open to drinking a soda or eating a cookie than ripping a 2 foot glass binger.
Currently, yes I believe their numbers
Management, the accountant and the lawyer who signed off on the earnings numbers are putting themselves in major legal jeopardy should those numbers be false. Lets just say Michelle's $2m take in early March would likely go to legal fees and maybe a few leftover scraps would go to lucky investors should those earnings be tainted.
Hopefully the audited earnings will shed some better light as to the sources of revenues. Obviously, the CANV deal needs to be clarified. Personally, I do not think the shares granted in the deal should be reported as income unless they are liquidated but the shares most definitely are assets.
.18 is a "support", .09 a "base"
There is a wee gap at .175 which a few weeks ago would be the number to watch for when MJNA was still around .32
.09 is very low, giving MJNA only a $80m market cap, but it is possible.
I'm a buyer at .18 and will load up at .09
Typically MMJ stocks boom in Feb / Mar and trade sideways the rest of the year. However this year is different as the legal movements gain steam. MJNA is also making strides for uplisting and being SEC compliant so the positive variables are in play now more than ever.
PREPROGRAMMED MINI CRASH
You might have missed it but a few minutes ago there was a "mini crash" in the equities market due to a fake AP tweet about the White House being attacked and Obama being injured. It sent several large cap stocks down instantly and the VIX / VXX swing 2% instantaneously.
BOTTOM LINE
The reason share price is eroding is because there are no buyers. Those like me who bought well below .10 have no reason to buy more.
Those who got in about .10 are getting weak and selling.
Those who got it above .30 are extremely weak and selling out.
There are 2 issues facing MJNA
1. AG Holder and the federal legality
2. Previous quarter audits
Latest SA Article: "Don't Inhale"
That article is written by an intern at a proprietary trading firm. Are dark pools getting involved in the industry? It would make sense as the trading could be anonymous since institutions are not legally allow to invest in the cannabis industry.
Side note: my iHub posts keep getting deleted
Absolute Rubbish
There is absolutely no chance that AG "enforces" federal laws regarding MJ. That would open up the federal government to endless lawsuits from patients, businesses, and shareholders to name a few. Americans For Safe Access and NORML would have a field day suing the federal government for interfering with states and patients right.
It could also flip the Republican Party on its keister. Marijuana has become a preeminent battleground for states rights issues and lack of Republican support for states who's citizens declared their right to access cannabis would be utterly deplorable.
Additionally, similar to guns and gun control, marijuana is not dangerous in the hands of the right people. Marijuana is only dangerous when drug cartels and gangbangers run the trade. For the US government to crack down on cannabis while the country allows rampant gun use is just absurd.
Ha! What a clown!
1. The author worked for Goodyear and Firestone. Great companies. In the 1940-50s the same companies lobbied Los Angeles to block public transportation in favor of highways where their products would be more useful, hence profitable. Not only did they lobby city governments, but they hired goons to tear up light rail track, assault rail workers and harrass passengers. He is well suited to write negative press on hemp and marijuana. WR Hearst would be so proud!
2. The dingbat wrote an entire article based on the April 8 Fortune issue but throught his article he said the article was in USA Today! Seriously? He doesn't even get that one simplistic fact right? It makes you wonder if the author even read the article. Or If he can even read and just saw the cover. Unreal!
3. I love how the dingbat author blames the "ultra-liberal states" for medical marijuana. Again if he understood facts, many conservatives favor legal cannabis. Even more ironic, state rights is a major conservative platform and there is hardly a more clear cut example of states rights being violated by the federal government than the medical marijuana issue. Aside from that, the heartland could really seize the opportunity to revitalize their unused farmland with an entirely new cash crop.
4. His comments likening the marijuana issue to gay marriage and abortion just displays how truly small this ignorant man is.
4a. Recent studies showing 52% of America supporting legalization is not a small majority! Dunce!
4b. It is the author who is the small majority screaming so loudly that his antiquated, racist, fascist, dangerous ways of thinking actually still have an audience.
I got news for these types and the Bill Orielly's who are trying to reclaim "1950s" style J Edgar ruled societies:
These "ultra-liberal" or progressive policies will always prevail! You have already failed.
Flat earth (ancient "truths")
Geocentric solar system models (the church placed Galileo, as well as others, in jail and finally house arrest for teaching the correct heliocentric model)
Slavery (which was supported by not only society, but the moral authority, the church)
Women's Suffrage
Segregation
Civil Rights
Abortion
The list goes on with issues that have been deconstructed for the better of society despite the opinion and will of an ignorant few hiding behind thin veils.
Agreed, however
People are also tense because they got in above .25
And the wild predictions here about massive share price explosions that are supposed to occur tomorrow, next week, next month......
And the horrific chart work and TA calling for support or bollinger based share price pops.....
Bottom line is if you can't stand the heat.....crank up the AC!
MJNA has a potentially stellar future but pumping on a message board only make weak hands weaken.
There really aren't many people interested in MMJ
Keber and others have stated there are about 13,000 MJNA investors.
At my dispensary in CA the owner (and budtenders) has never even heard of Dixie or even publicly traded MMJ stocks and the dispensary makes over $350k/month. These are people directly involved in the sale of cannabis and they don't even know about these stocks
I still stand by this analysis
See original post
Expect lots of new press from this weekend
The Cannabis Cup is going to be well covered. I have 2 friends flying from LA to attend the event on behalf of their media based employers. One friend is covering the Snoop event and the other for a major news outlet. I had dinner with them last night where we discussed MJNA and ERBB, 2 Colorado based canna-businesses. Not surprisingly, the news friend knew of the companies.
What did shock me was a conversation I had the other day with the owner of a dispensary in California. I asked if she had heard of Dixie and she had not but other people had asked about it. MJNA needs to seize this opportunity the Cannabis Cup provides for brand exposure and so far sponsoring the Snoop Lion event is a great start!
Everyone's getting a little itchy about the 4/20 but I don't expect the actual date to be a game changer until next quarter's earnings reports. There may be some initial hype next week but that only lasts so long in the penny stock realm. Hopefully, the Cup will become an annual boost to Colorado's cannabis market, the very market where MJNA has the strongest presence. The Cup is to cannabis as CES is to tech.
The "kids" argument is ludicrous
It is an established fact that underage kids have an easier time accessing illegal drugs than alcohol since alcohol is so heavily regulated. In all likelihood, if recreational marijuana was legal and regulated like alcohol, cannabis would be harder for underage individuals to access.
WTF Was That 400,000,000 Day's Volume
Nuts right. Nearly half the float changed hands and the stock barely moved. I'm pretty excited for the Cannabis Cup. Should be some good exposure for the industry. Since ERBB actually sells herb, this event could be a nice revenue boost.
250000 Bid @.006
Thats me. I'll be buying another 250000 when that hits with another 500k I'll buy in 250k lots.
Michelle Sides Selling
Folks directors sell shares all the time for a variety of reasons, often due to tax reasons for shares they have been granted. Those shares are typically restricted, therefore they pre-plan sales when the restrictions are lifted. I remember in 2006 when Jobs unloaded a few million share granted to him by Apple. The message boards lit up about Steve bailing on Apple, having foresight into Apple failing, and some even accused him of bailing because he knew Apple's books were cooked.
If insider sales were an indicator of a stock's ability to perform then every equity on the market would be at 0!!! Get over it already
Saving dry powder for .18
That's the number to watch for. There is a small gap at .18 and .09
I will buy 100,000 shares at .18 and if it dips to .09, I'll buy 250,000.
My Take On EARNINGS and Seeking Alpha's Responses
Lets start by discussing MJNA from a technically and fundamental POV, with as little emphasis on my opinions. I'll close the article with a nice, opinion laced rant about Seeking Alpha but I'd like to discuss the important info first.
Technical Info
Technical analysis is not necessarily applicable to penny stocks because volume can be so erratic but MJNA seems to have some wind at its back after the recent activity. Shortly after the "golden cross" (50 MA taking over the 200MA) in February, MJNA went parabolic and pulled back immediately due to profit taking. The stock has held .25 support but is weakened daily. Right now, the MACD is looking at positive divergence which can be interpreted as bullish. The pps is nestled in the center of the BBs and RSI / StochRSI levels. On the bearish side, there are some unclosed gaps up at .17 and .08. The gap at .17 is a little worrisome and may be a number to watch out for. Calling resistance and support is somewhat useless because MJNA has barely traded at these levels for long and there has been little capitulation either up or down. That being said, should MJNA dip to .18, expect to see a lot of buying. To the contrary, should it hit .35, expect profit taking. And thats all from inside the crystal ball.
Fundamental Info and Earnings
Fundamentally, Medical Marijuana Inc appears to be making money. The profit margins are still quite high according to the current earnings report. Quarter ending March 31, 2012, MJNA reported revenue of $1,788,445 according to their first ever earnings report (see Link 1 below). Same quarter 2013, MJNA reported revenue of $8.45m (see link 2) for a growth rate of roughly 470%. Based on that growth rate, calculating for 2012 reported revenues, Q2 2013 should bring in $11.3m, Q3 2013 seeing $14m, and Q4 2013 being $24.5m (See chart on link 1). Those estimates put 2013 year end revenue over $55m which is $8m more than projected earnings of $47m (see Link 1). By all means those numbers are interesting and show healthy growth. Positive upcoming events include the first ever US Cannabis Cup in Denver providing a possible revenue injection and some great brand exposure for Colorado based Dixie products. Also pending is looming federal response to marijuana prohibition, a response regarding the initiative to uplist the equity and the international expansion of MJNA portfolio companies. The wait begins for the next earning report.
Now for the caveats. The issues facing Medical Marijuana Inc include the following;
Transparency. The Company's earnings reports are less than detailed. It contains an awful lot of fluff about business prospects via various entities but little hard numbers to elaborate revenue streams. Earnings reports from SEC listed companies are full of details regarding specific assets, revenue steams, liabilities, debt, and so forth. MJNA provides a bottom line but not much else, making it difficult to understand sequential growth patterns or cycles but those could become more apparent as more reports are issued.
Management. The first ever report released February included a line about pursuing legal options regarding the Seeking Alpha article from Infitalis but there has been no follow up since. The issue may still be pending but some clarity would be nice. The unrelated legal matters with Mr. Llamas also need clarification which will likely come with further appearances in court. Some insight into his position as a shareholder and controlling member would be good. Concerning the legitimacy of the earnings reports, the officers of MJNA and the auditors are well aware of the consequences for filing false information. For know, there is little reason not to trust current earnings reports. Comparing other legal matters to potential securities fraud is a non sequitur. The unrelated personal and legal issues of MJNA's management are innocuous and do not seem to interfere with the Company's ability to make profits. Similar issues are prevalent throughout management of Fortune 500 companies and its often the unreported activity that is far more worrisome.
Competition. MJNA is well positioned in the cannabis market. Currently MJNA is the market leader but the market is still in its infancy with little to no interest from financial institutions as they are legally forbidden to commit money to the cause. With federal legalization, the worry becomes that large, existing commercial operations like Pal Mal or InBev could enter the market and push establishing companies like MJNA out of relevancy. However, this is a double edge sword because MJNA could potentially be bought out for a large sum since the company is not just a bunch of stoners cooking up products in their apartment. MJNA has established brands, products and distribution that can be seen on programs like 60 Minutes and in Time Magazine.
And now to close with a mindless personal rant.
Seeking Alpha
I have tried numerous times to post articles and responses on Seeking Alpha but have been denied repeatedly, being told MJNA is too speculative a subject to publish my articles or MJNA is too easy to manipulate to allow the writing to be accepted. As you have seen, I have offered a slightly optimistic, but relatively balanced opinion of MJNA, similar to what I have submitted to SA. Despite the censorship from SA, the site still publishes 3rd grade book report worthy analysis from some of the regular "contributors", in addition to comments and replies far more offensive and disorganized than mine. Most of those contributors are hack writers just slinging garbage about certain stocks in order to get their $10 per 1000 views. Asharf is clueless regarding the cannabis industry, using the economics 101 term "low barrier to entry" to describe it, insinuating the development of a profitable marijuana related business is a relatively simple endeavor. Sure buuuudy, the only "low barrier to entry" obstacles are what? The liquor lobby who are threatened by another legal intoxicant to steal market share. The privatized legal institutions like prisons and public law enforcement organizations who draw revenue from prohibition. The century of systematic propaganda demonizing cannabis and hemp from competitive interests like WR Hearst to J Edgar Hoover. The pharmaceutical companies who's products could be trumped by a natural and non-lethal plant. Oh yeah, and that whole US federal government's "opinion" that marijuana and hemp are dangerous, therefore illegal in society. And that does not even include the enormous costs to growing high grade marijuana, let alone knowledge and risk. That sounds like a real easy market to just slide into. I wonder if he has even seen a Dixie product or talked to an MJNA rep or seen the power, water, nutrient requirements of a 500 plant grow op? The other guy, Alan is pretty much a lapdog for Asharf, answering comment after comment, regurgitating praise for some of the most inane comments and contributing little with his "analysis". I am disappointed that Seeking Alpha has banned my writing because it has been pretty objective up to this point. The one comment I did post on SA under this same ID addressed his article point by point but Asharf and Alan apparently cannot handle fact based debate.
Finally, I post on this board and others anonymously for personal choice. I'm not looking for recognition. I'm not looking for money for writing. The only other stock I have aggressively analyzed as much as MJNA (and a ERBB / CBIS) was AAPL in 2005 when I loaded up after buying an iPod. Apple computers and cannabis are two of the things I have used most of my life and both investments have paid off in spades.
Link 1.
http://www.medicalmarijuanainc.com/index.php/press/49-press-releases/2013-press-releases/224-medical-marijuana-inc-releases-2012-annual-share-holders-report-and-first-ever-corporate-revenue-forecasts
Link 2.
http://www.medicalmarijuanainc.com/index.php/49-press-releases/2013-press-releases/240-medical-marijuana-inc-reports-record-first-quarter-2013-revenue-and-income
BANNED again by Seeking Alpha
Once again, my reply to Troll "Writer" Alan Borchstein was deleted. The reply is at the bottom. See for yourself if its too offensive. My favorite part is that the idiots at SA call my opinion "unsubstantiated". Hey SA editors go back to school and learn how writing articles that have "I, me, and my" is frowned upon because it weakens an argument by injecting personal opinions!
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Content submitted on April 12, 2013, 10:37
On Article Why Medical Marijuana Inc. Has Lost Its Buzz by Alan Brochstein
Original comment:
Most good economic writers try to avoid writing sentences with "I", "me" and "my" because it seriously weakens the arguments, immediately identifying the statements as opinion instead of fact. Like Asharf, your article is so full of biased personal opinions, it makes one question what your motivation is, especially since you disclosure of no financial involvement with MJNA. What is your fascination with MJNA if you have no skin in the game and please spare us the "saving one investor from making a bad move" mantra that is chanted by message board trolls and net nuts? The timing, as well as content of this article, was utterly predictable and merely a rehashing of old opinions with a sprinkle of new earnings numbers. By now, the good people have figured there is no wolf coming and you are using this subject just for personal attention
ERBB Analysis
Currently the cannabis industry is expanding in ways unimaginable barely a decade ago. For the first time in almost a century, the general public is now able to legally profit from the marijuana and hemp trade without fear of persecution. The ever changing legal status and public opinion regarding marijuana is making for exciting opportunities as the light now shines on this once black market.
One of those opportunities is Tranzybyte Corporation (ERBB). Like many penny stocks and marijuana related businesses, ERBB is a highly risky investment. However if you have access to disposable capital, ERBB could provide an incredible return on your investment. Before going on any further, I must disclose I currently hold a long position of 4.2 million shares, having originally purchased 5 million shares at .0014 and selling 800k shares a few weeks ago at .018, recouping my initial investment along with a healthy profit. Now that that is out of the way, here is my analysis of Tranzbyte.
Like most stocks on otc and pink sheet markets, ERBB is highly speculative and not entirely transparent, making a fundamental business analysis a little challenging. Yahoo Finance currently lists the outstanding shares at nearly 800 million. At the current share price ERBB commands roughly a market cap of roughly $5 million. That market cap is incredibly cheap and will be discussed below. Because the share float is so large, each .01 cent move is a gain of nearly $8 million in market cap. Such increases make it challenging for for the share price to climb drastically but at the current price, ERBB is highly undervalued.
Tranzybyte is one of the only publicly traded companies actually selling cannabis direct to consumers. The Company does so through 2 stores in Colorado under the Altitude Organic label. The Altitude Organic dispensaries provide high quality cannabis medications to residents of Colorado including traditional marijuana buds, edible and drinkable forms as well as many other cannabis products. Tranzbyte also has proprietary MRI technology through ProximaRF and radio frequency (RF) technology that they are working to incorporate into vending machines. The information regarding the vending machines is still very limited so further speculation or comparison to MedBox is not worthy at this time.
The direct sale of cannabis to consumers can be extremely lucrative. In California, some of the more successful dispensaries can draw over $1 million a month. Should Altitude Organic dispensaries command similar revenue, the Company would be making over $10 million per year at each location, totaling nearly $20 million a year or nearly 4 times the current market cap. Altitude Organix also has its own brand of edible cannabis treats which could be greatly expanded upon for larger distribution.
The current pending recreational legality of marijuana in Colorado would provide a major boom for cannabis retailers in the state. "Pot tourism" could potentially make Colorado the Napa Valley of marijuana, bringing enthusiasts from all over the world to sample goods. Tranzbyte is also expanding into Washington state, as the state has approved similar recreational use of cannabis. Additionally, as the public perception continues to ease regarding marijuana use, the US Attorney General Eric Holder is forced to confront the federal stance on marijuana prohibition and all signs point to an ease in policy.
The medicinal use of marijuana is also a potentially explosive market and research is being conducted as to the effects on ailments ranging from cancer cell reduction to pain management to epilepsy to autism to depression to so many other applications. There are untold billions of dollars in each application and testing has been extremely positive for several conditions. As it stands right now the DEA considers marijuana a Schedule 1 narcotic, on par with heroin, claiming there is no medical value for cannabis. Ironically, of all drugs on Shedules 1 through 5, marijuana is the only one with absolutely no credible evidence of fatal side effects.
After all that, my current projections for ERBB put it in a range between .10 to .20pps, giving it a market cap of roughly $80-160 million. This is based on potential annual sales via Altitude Organic dispensaries, expecting as much as $10 million annual revenue for both locations. Obviously the share price could explode to .25 to .75pps or beyond if the RFID and vending machine initiatives take hold. Needless to say, if you have a few thousand dollars to risk and a strong investment ethic, ERBB could provide substantial returns.
Patent infringement....thanks for the laugh
Seriously? As if MDBX has some sort of proprietary tech for these vending machines. I hate to break it to you but these automated vending machines have been around for about 10 years. In Japan, consumers have been able to buy items at vending machines via a cell phone swipe, similar to a Starbucks app for the iPhone.
Black Market Comes To Light - The Long Case For Medical Marijuana Inc
about:MJNA.PK
Tried to publish on Seeking Alpha. The editors responded by saying MJNA is a penny stock and highly subject to manipulation therefore they would not publish. I'm calling BS. They post poorly written, factless drivel by Asharf and his lapdog Alan but deny this.....
Elevator Pitch
For nearly 40,000 years mankind has used cannabis and hemp for medicinal, spiritual, and industrial purposes, among so many other applications. Unfortunately, the past century has been particularly cruel to marijuana and hemp, especially in the United States. However, the new millennium has brought to light the once the black market where cannabis trades. Today, average citizens are able legally profit from the cannabis and hemp trade without fear of legal repercussions. Medical Marijuana Inc (MJNA.PK) represents one of those opportunities as the current market leader.
Company Description
Medical Marijuana is a portfolio company that has equity in several marijuana related businesses. Red Dice Holdings is currently MJNA's most profitable interest, bringing in revenue from the Dixie Brand products. Dixie products include various psychotropic edibles and beverages, as well as non-intoxicating varieties of Cannabinoid (CBD) products such as medicinal lotions, drinks, other ingestibles. Cannabinoid based products are legal for sale in all 50 states and MJNA is currently working to place these products large retailers such as Whole Foods. MJNA has interest in other companies and models their business from "seed to sale". Although the Company does not physically produce marijuana, they are involved in the international hemp trade (hemp is the non-intoxicant variety of the marijuana plant).
Thesis & Catalyst For Medical Marijuana
Since marijuana has traditionally traded on the black market, evaluating the market is difficult because most illegal operations do not release earnings reports or publicly disclose revenues. The estimates for the illegal marijuana trade in the US range from $10-150 billion anually. Keep in mind those estimates are based mostly on recreational "smoking" users of marijuana and do not include medical, textile and industrial application of marijuana or hemp. The medical industry for marijuana is potentially enormous. Cannabinoids, also known as CBDs, are currently being tested for a variety of medical applications including cancer cell reduction, autism treatment, pain treatment, and epilepsy. Each of these ailments individually are multi-$10 billion markets alone and should CBDs be found to treat several conditions, MJNA could see untold billions in revenue from medical applications. The social intoxicant application is another potentially enormous market for MJNA. The legal liquor industry is a $300 billion dollar market. Just a small part of that market share could lead to enormous revenue. As marijuana gains acceptance in US society, with several states considering similar recreational legalization passed by Colorado and Washington, an abundance of new customers enter the cannabis market. In all likelihood, new cannabis users will prefer to ingest edibles or drinks opposed to smoking. MJNA is uniquely positioned with the established Dixie brand drinks and edibles, already available in over 500 locations in Colorado. Marijuana tourism is another potentially large opportunity for the industry as the Emerald Triangle of California could become the Napa Valley of cannabis. Aside from medical and recreational applications, industrial applications of hemp are something that have long been denied the US as it is the only developed country currently banning the production of hemp. The very outlawing of hemp was the result of special interests acting to protect their investments in competitive materials.
Valuation
Public perception has drastically changed for the better regarding marijuana. The federal and state government policies continue to ease policy as the potential for ending cannabis prohibition looms. Medical Marijuana Inc is well positioned to capitalize off these advancements. MJNA has begun to show profit despite the tenuous legal circumstances. Should full legalization occur, MJNA's revenue could be billions of dollars.
Company Management
There are some concerns going forward. There has been a lot of discussion about management of MJNA. Former director Michael Llamas is currently facing fraud charges in California, unrelated to MJNA. Llamas is a major share holder of MJNA and it is unclear how his interest in the Company is affected. Tripp Keber is perhaps the most high profile executive member of MJNA's board and he is the president of Red Dice Holdings (Dixie products parent company). Keber has appeared on iCannabis Radio and other media to promote MJNA, Dixie and the industry as a whole. While there has been a lot of speculation about management, including some slanderous web publications, the profits generated over the recent quarters show management has executed.
Revenue & EPS Outlook
Today, MJNA trades at .26pps. Unfortunately, the share float is somewhat uncertain with estimates between 300-800 million, a wide discrepancy. The Company needs to provide some clarity on this issue but to be safe, the best estimate is the highest of 800 million, giving MJNA a market cap of roughly $200 million. Based on forward projections of $47 million in revenues, MJNA trades near 5 times forward earnings. For a growth company, this is average. Should MJNA realize medicinal or commercial applications describe above, the revenues could easily be in the hundreds of millions of dollars. The goal of $1pps would value MJNA at nearly $1 billion. At 5 times forward earnings, a $1 billion valuation would require around $100 million in revenue. Should CBDs be found to fight the spread of cancer, autism, epilepsy, or other conditions, revenues could be in the multiples of billions of dollars, giving MJNA a market cap of $10-50 billion or beyond, putting the share price in double digits. Obviously these projections are highly optimistic, but at .25 per share, it is like buying options contracts that do not expire unless the company goes bankrupt, which seems highly unlikely as profits are now being realized quarter over quarter.
Conclusion
Attorney General Eric Holder has been forced to address the issue of marijana legalization. As of now, the DEA continues to classify cannabis as a Schedule 1 narcotic, same as heroin, meaning it has no medical purpose and has a high likelihood of abuse. Ironically, of all the drugs classified on Schedule 1 thorugh 5, marijuana is the only one that has absoultely no credible documentation of fatal overdose. Americans are becoming aware of the failure of the war on drugs which only serves to make drug cartels more money as the war provides a premium for illegal goods. Contrary to claims made by law enforcement who lobby for prohibition to justify their annual budgets, the war on drugs is also an enormous burden on police, courts and prisions because of the wasted time and money prosecuting minor cannabis offenses. Once these outdated laws and propoganda fall, the revolutionzation of cannabis will cause a revitalization in the form of new commerce and Medical Marijuana Inc is leading the way to capitalization of the legal marijuana indutry.
Disclosure: I am long MJNA.PK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
This article is tagged with: Long Ideas
Got my neighbor in for $50k worth.
Ran into him this morning at Starbucks. He knows I made plenty from AAPL and QCOM and asked me about my recent activity. I told him about MJNA and he is going to buy some. This guy was married to the heiress of Negro Modello and has loads of money