Irritable
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Sarcasm?
There have been articles critical of MJNA that have made decent points in the past, but yesterday's article didn't really have any.
Looking at the information in your message and a couple of others that were just posted, I think it's pretty obvious that MJNA does not own Dixie. At the same time, I think the way that the ownership of Red Dice Holdings is laid out, it's also pretty obvious that MJNA (1) has majority control over aspects of Dixie that are necessary for Dixie to make money and (2) is in position to legally "have its way with" Dixie post-legalization. Thus, I think it's pretty much correct to say that MJNA controls Dixie right now.
Red Dice owns the brand name and intellectual property rights for Dixe's products. That means the production, marketing, and selling of Dixie products are not up to Dixie. These things are up to Red Dice. So, to see who is really in control right now, we have to look at which entities control Red Dice. It's 40% controlled by Left Bank (Tripp and Chuck) and 60% controlled by CannaBANK (MJNA). So, MJNA controls Red Dice, and Red Dice controls Dixie. Right now, prior to legalization, what Dixie makes, markets, and sells is already largely up to MJNA, not Dixie itself. If the folks at Dixie want to do something with a particular Dixie product but MJNA thinks it's a bad idea, MJNA has the power to say no. MJNA also has "soft power" over Dixie through the MJNA shares it has provided to Tripp (don't know about Chuck) for next to nothing. After legalization, once there are no longer any significant risks involved in dealing more closely with Dixie, what does everyone suppose MJNA might do with the power afforded by the Red Dice ownership structure to control Dixie and collect licensing fees? What do you suppose Tripp (a guy who has been offered a large number of MJNA shares for virtually free and who is a self-proclaimed serial entrepreneur who has already announced he plans to eventually sell Dixie) will do with Dixie at that point? (He will do what's in his best financial interest, and the free shares and the structure of the Red Dice deal make it extremely likely that doing what's in the best financial interest of MJNA will also be in the best financial interest of Tripp.)
Through the Red Dice deal, MJNA has (1) eliminated the possibility that other companies can step in and control Dixie's operations after legalization and (2) ensured that they will be negotiating from a position of overwhelming advantage (if there isn't already a tacit agreement that precludes the need to negotiate at all) if and when they decide to buy Dixie outright. Even if another company were to somehow step in and manage to buy Dixie, the new company would be buying a company whose operations they cannot control without MJNA's legal consent. MJNA would still control the brand name and intellectual property rights and would still have the right to collect licensing fees, ensuring that MJNA would have the new company on a leash, just like they have Dixie on a leash right now.
After Accrafael informed me of this, I called to check on it, and they confirmed what he said. The number is 1-877-770-3838.
If you also call, please try to get more specific information regarding the boxes that made up the first batch (Were they all 32-piece boxes?) and how many boxes have been sold since the first batch sold out.
I wish MJNA would post an update on their Facebook page reporting how CanChew is doing so far.
I don't presume to be able to predict the short-term trend of MJNA's stock price. We may be entering a period of relatively few PRs, so the net flow of money during the next month or so could be out of the stock, as you said. Also, management's ability to screw up simple tasks and hide unflattering information while simultaneously failing to capitalize on legitimate PR opportunities is unparalleled. However, I think there are also some reasons to believe we may witness a rise in the PPS leading up to the pre-release of the Q2 financial report.
1. Even though the stock very briefly dipped below $0.15 a couple of days ago, it has been showing pretty strong support around that price level. Recently, each time the stock has gotten close to $0.15, the bid size has climbed to between 500,000 and 1,000,000 shares. Many people had hoped that the stock would fall to $0.10 so that they could get in cheap and triple their investment on the next run-up, but judging by the support that I just mentioned, it appears (at least for the time being) that enough investors view $0.14-$0.16 as the bottom to prevent the PPS from substantially declining too far below $0.15.
2. The PPS has repeatedly made small run-ups consisting of extremely large buys this week, held back only by large ask sizes submitted by whatever entities are selling through VNDM. This further suggests that many investors believe we've bottomed out and are primed for another run-up.
3. Due to the lack of substance in past PRs and financial reports, investors are very anxious to see hard, positive data regarding (a) CanChew sales, (b) CannaVEST sales (to legitimize the CANV PPS used in the CannaVEST deal, (c) the audit and uplisting, and (d) an indication that share count dilution has slowed. At this point, we know that the Q2 report, at the very least, will have good news regarding revenue from the CanChew sales. MJNA very quickly sold its first batch of 3,000 boxes of CanChew gum. That's a substantial amount of revenue (most likely between $300,000 and $375,000) that was generated in a very short amount of time. A few thousand more boxes have come in, and CanChew is now busy selling those, which will bring in another few thousand bucks in revenue. If the sales pace remains high and CanChew's production capacity can keep up with orders, we will see two or three million dollars in revenue from CanChew in the Q2 report. If, here in CanChew's initial clumsy, unprepared attempt to sell its product, we see that CanChew has managed to generate two or three million dollars in revenue (or even just one million), it indicates that CanChew (as it becomes more efficient through experience and begins to advertise more effectively) will generate a lot more revenue in the near future. I think that many investors can already see these connections that lead from (a) the information we already have about CanChew's rapid sell-out of its first batch to (b) high revenue from CanChew in the Q2 pre-release of financials to (c) investors' predictions of significant future revenue increases from CanChew based on the Q2 data to (d) a significant rise in the PPS. Thus, in preparation for this jump-up in the PPS, perhaps many people are already starting to buy in and will continue to do so in increasing numbers leading up to the Q2 pre-release of financials.
A few days ago you said that when you called CanChew, they said the first batch of 3,000 boxes had been sold out and that they were about to have a new batch ready for sales. Do you know whether each batch consists of 3,000 32-piece boxes? If so, that means there were between $300,000 and $375,000 worth of sales prior to that batch being sold out. If some of the 3,000 boxes are boxes containing 64 or 96 pieces, then the sales revenue for that batch could be greater than $375,000.
Did they say exactly how long it took them to sell out the first batch? Perhaps the sales rate will slow down a bit over the next couple of months, but the way we've started off seems promising. If we manage to sell a few more batches before the end of this quarter, there will be a good chunk of revenue added to the Q2 report.
Hilarious.
1. From now on everyone should refer to Tripp as Maria.
2. I think the company could turn this into a positive. Dixie could sell "Tripp Mug Shots" -- THC-containing beverages in little mug-shaped bottles that have Tripp's mug shot on them.
3. That guy never stops wearing stripes.
There's likely nothing in particular going on. Aside from the lifting of the DTC chill and a smidget of increased transparency from the company, most of the news and financial data released lately haven't been all that good. The giant VNDM wall at 0.1523 fell. The PPS went up to 0.153. People got a bit excited, and the PPS started to move up a bit more. Momentum traders jumped in to earn a quick buck. Some of those who recently got out jumped back in, worried that they had abandoned ship at the wrong time. Before we knew it, we found ourselves at 17 cents. Now we seem to be going back down. Who knows what it'll do next. Everything about this stock and the PPS and the company and the management and the articles about it is F'ed up beyond recognition. I hate it. If it goes to $5 today, I'll still hate it (but with a smile on my face).
Well, CANV’s Q1 report was quietly released yesterday after the market closed. It didn’t contain any good news. Perhaps CanChew and CannaVEST will surprise everyone in the MJNA and CANV Q2 financial reports, and the revenue from these two entities will greatly ease everyone’s concerns about (a) MJNA’s ability to generate revenue to fund their activities and prevent further share count inflation and (b) the near-future value of the CANV shares provided to MJNA in the CannaVEST deal. We can’t rule out this possibility using the information currently available to us. I have to say, though, looking at the company’s recent behavior and financial filings, it’s becoming more and more difficult to maintain much hope in this possibility.
MJNA has been absolutely reckless with their revenue and income figures. The company has been willing to throw out huge revenue and income figures for 2013 and 2014 but has been completely unwilling to provide any cogent rationale for these figures, despite being relentlessly, urgently begged by shareholders to do so and despite multiple public articles providing extremely unflattering explanations as to how MJNA arrived at these figures and why MJNA posted them. These unflattering explanations make MJNA management look like either incompetent businesspeople or incompetent crooks, and without any solid, evidence-backed rebuttal provided by MJNA or at least verifiable facts and financial data with which investors can concoct their own rebuttals, many investors are left thinking that the negative articles are probably right. Every ungrammatical, vague PR issued by MJNA is 99% fluff. They do absolutely nothing to disassemble the negative views of the company and enable investors to replace those negative views with more positive views. When MJNA actually does manage to release information that provides some insight into the actual goings-on in the company and its financial situation, invariably that information serves to lend support to the already existing negative views that are out there. Why is this? I can understand that there is information that companies don’t like to release out of concerns over competitive advantage, concerns over legal issues, and concerns over prematurely talking about the results of deals that haven’t completely played out yet. Do concerns such as these really prevent MJNA from saying ANYTHING that can effectively combat the negative explanations currently out there? Is there really NO verifiable financial data or good news that MJNA can find a way to safely, legally say in order to enable investors to conclude or at least have a feeble bit of evidence-based hope that (a) CannaVEST is going to get the $5 million it needs for operations in 2013, that (b) CannaVEST is going to generate sufficient sales and revenue in 2013 and 2014 to make MJNA’s past revenue predictions and the PPS used in the CannaVEST deal seem reasonable, (c) that MJNA isn’t going to balloon the share count up to 2 billion while Ms. Sides and other insiders start cashing in their shares, that (d) that MJNA isn’t going to concoct some scheme to artificially inflate CannaVEST’s revenue for a quarter or two so that MJNA’s PPS will jump up and management can begin unloading its millions and millions of shares at relatively high prices? Is there really no concrete information at all that MJNA can provide about any of this to enable investors to address these issues? Taking a tight-lipped stance can be reasonable and admirable in some instances, but when every piece of financial information points to failure and dishonesty and virtually every article penned about the company portrays a poorly conceived scam, causing the PPS to tank during a time when the company is selling shares to purportedly raise capital for its activities, then what in God’s name is the logic behind this combination of silence and slow-drip release of ever more damning financial information? The amount of as-yet-unknown information that could potentially change investors’ view is growing smaller and smaller, and the amount of known information that portrays incompetence and fraud is growing larger and larger. At this point, honestly, even if concrete, verifiable information comes out today that proves beyond a reasonable doubt that CanChew and CannaVEST will be wildly profitable, that there’s no need to increase the share count, and that all the other eleventy-seven gazillion issues raised by the company’s naysayers are resolvable in a manner that casts a favorable light on MJNA, this company’s management is still a failure ethically and business-wise. All of this turmoil has been made possible by the company’s unwillingness to tell the truth and communicate with investors. While the PPS was soaring up, they issued one fluff PR after another, but with regard to real issues, while the PPS was going up and while it was tanking, they maintained silence, leaving shareholders groping in the dark, guessing about the company’s true intentions and financial situation.
Acquisitions
Katano:
I agree.
It's possible to assemble together certain traits and past actions of the company in isolation from other traits and past actions such that the company looks like a scam, but when other aspects of the company are also factored in, the probability of this company being a scam is very low. Thus far, the company naively has engaged in overly aggressive accounting methods intended to create a more financially secure image of itself than is currently warranted, and it hasn't communicated well with investors about either its strong or weak points, leaving investors unable to definitively assess the status, potential, and intentions of the company. In the next few months, however, I think we're going see decent income begin to come in from CanChew (although I think they'll eventually have to come down on the price of the gum), and we're going to see decent income begin to come in for CannaVEST. When investors see this income, they'll begin to relax about MJNA finding sufficient income to continue to operate and also begin to regard the CANV shares as swiftly on their way to being worth the value at which they were pegged in the CannaVEST deal. Once MJNA "shows us the money," investors will forget what all the little complaints from the SA articles were about, and they'll start talking about MJNA being the Apple of the cannabis industry again and so on. We're also going to see the company manage to obtain funding from some of the various alternative sources of loans that keep springing up, which will enable MJNA to keep the sharecount from going too much higher. Lastly, I think everyone should remember that after legalization, Dixie will genuinely belong to MJNA. No one should doubt this for a second. MJNA is a holding company. Dixie is owned by Tripp Keber, who starts businesses for the sole purpose of selling them. The interactions and mutual aid occurring between MJNA and Dixie right now are not being carried out for nothing. When Dixie gets officially put under the umbrella of Dixie, MJNA is going gain from Dixie's sales of THC-containing products -- past, present, and future sales. To think that MJNA is working as closely as it is with Dixie but has not worked out a private deal wherein MJNA will control Dixie following legalization is crazy.
I still wish Ms. Sides would temporarily return most of her shares as an acknowledgement of shareholders' concern over the sharecount and the possibility of a scam. If she doesn't really plan to cash them in any time soon and if the company is legitimate, no harm will come to her by doing so. She can always have them reissued to herself in a couple of years, once the company has proven itself.
Hopefully we'll see promising revenue from CanChew and CannaVEST soon. Revenue from CanChew will directly add to MJNA's revenue, and the more revenue we see from CannaVEST, the more MJNA's CANV shares will be viewed as worth the price at which they were pegged in the CannaVEST deal. The greater the revenue generated by CanChew and CannaVEST, the less MJNA will have to continue to dilute its shares to fund its operations and (probably) those of CannaVEST. Were Ms. Sides to temporarily return the majority of her shares and perhaps re-award them to herself in a few years after the company has put itself on more solid ground, this also would lessen the dilution problem and improve investors' perception and trust of MJNA and its management.
Questions for all:
1. What should Michelle Sides do with her 40,000,000 shares? What does it mean that she is retaining 40,000,000 shares amid all the dilution that recently has taken place?
2. In the Q2 financial reports for MJNA and CANV, what numbers do you think we're likely to see for (a) CanChew's sales, (b) CannaVEST's CBD oil production (volume), and (c) CannaVEST's CBD oil sales (dollars)?
3. In the Q2 financial report for CANV, what figures for the volume of CBD oil produced and income from CBD oil sales does the company need to release in order to ease your doubts over whether the PPS used in the CannaVEST deal is reasonable, i.e., whether it's really on par with the ability of CannaVEST to generate revenue in the next couple of years?
4. The company has done a little bit more lately to explain the logic behind the CannaVEST deal, but it still hasn't really provided much concrete information to give investors confidence in the ability of CannaVEST to generate the sort of revenue that would justify the PPS for CANV used in the CannaVEST deal. Why not? Toward this end, what information should the company release?
I think it's the inflated revenue (now deflated) from the CannaVEST deal that is (and has been for a while) the biggest elicitor of distrust toward the company and the biggest weight on the share price. Even though the company has now kinda-sorta come clean about it and has done a tad bit more to explain the logic behind the CannaVEST deal, they still haven't really explained why they're so certain CannaVEST will soon be profitable enough to legitimize the PPS used in the CannaVEST deal. I would do much more to explain the sales potential of the CBD oil if I were MJNA, as this would enable investors to more easily see the possible near-future value of CannaVEST and, thus, enable them to justify for themselves the PPS used in the CannaVEST deal. I personally don't see the fact that CannaVEST had only 1.3 or 1.4 million dollars in sales per the last report as a negative fact. CannaVEST is at the very beginning of its efforst to make and sell its oil. MJNA's subsidiaries that make CBD-containing products are just getting started and will continue to grow. The production of high-concentration CBD-containing products by other companies is also in its infancy and will continue to grow. Thus, I think there's a rapidly growing market for CannaVEST's oil, and I think its sales will go up pretty fast because of this. The next few quarterly reports hopefully will reveal this, but with some carefully chosen words about the market potential for CannaVEST's oil, the company could eliminate some of the negativity generated by the CannaVEST deal, so I don't see why they don't go this route.
The increasing share count combined with the issuing of so many shares to Ms. Sides also bothers me. The company knows investors are worried about dilution, and the company claims it will be bringing in millions upon millions of dollars in income in a year or so. In light of these facts, why does Ms. Sides need to have over 40 million shares at her disposal at this particular time? It makes it seem as though dilution is not really a big concern of the company. Also, if the company grows as much as it says it expects to, the stock price will be much higher in a few years, so why did she register to sell over 7 million shares a while back? It creates the impression that she doesn't believe in the long-term potential of the company.
Share Buyback Plan
Is it possible for MJNA to execute a share-buyback plan that is contingent upon the bid first dropping to a certain price? For example, could MJNA announce its (or its controlling shareholders') intention to buy at the price of 10 cents any and all shares (or at least some large number of shares) put up for sale at 10 cents or lower?
I think this would have benefits on multiple levels.
* This would almost certainly ensure the price cannot go below 10 cents.
* It would prevent the possibility that the uplisting would be delayed due the price falling below 10 cents.
* It would strengthen the impression that the company is serious about the uplisting.
* It would cause investors to infer that the company is not carrying out a pump and dump. (What company would buy back its shares at 10 cents if it knew the PPS eventually would go down to below a penny?)
* It would show that the company believes in its own value and is willing to put its money where its mouth is in order to demonstrate this.
* Were the PPS to drop to 10 cents, thereby setting in motion the buyback, assuming the company continued to grow and pull in profits, the PPS would eventually return to higher levels, and then the company would be in position to sell those shares for a profit or use them to finance more activities.
* Even according to Alan, the company is worth around five cents per share (I can't remember exactly what value he put in one of his posts). Ten cents is only about double that price. Unless MJNA has a really egregious screw-up in the near future, in all likelihood, the price won't drop to 10 cents. So, MJNA probably will not have to buy back any shares and, thus, can reap the benefits of announcing the conditional buyback plan without having to actually spend any money buying back shares.
If MJNA were to implement this sort of pre-uplist, PPS-conditional buyback plan, what steps would it have to take first?
Do MJNA and its controlling shareholders have the cash to carry out such a plan?
What percentage of the daily volume can the company buy back in a single day? I assume the company is limited in the number of shares it can buy back in a single trading day and that the plan described above would have to be modified. (For example, the company could announce it will buy back the maximum number of shares allowed on each day that the price falls below X cents, up and until it has bought back Y shares.)
I'm curious as to what thoughts others have about all this.
Has anyone here ever listened to the September 10, 2012, interview with Michael Llamas and Tripp Keber on the SmallCapVoice website? I've heard a lot of bad things about Llamas, but listening to him speak, he sounds like a smart, competent guy. Toward the end of the interview, they discuss the real estate issues that he was involved with. Naturally no one in that situation would say anything to incriminate himself or make himself look dishonest; however, according to his explanation, he really didn't have anything to do with the fraudulent activity that he himself admits occurred, and he also mentions that he lost tens of millions of dollors worth of property because of it. Anyhow, I'm just curious as to what others who have listened to the interview think about about it. Some of the information in the interview is outdated, but the interview still provides a lot of useful information about how MJNA operates and its relationships with other companies (e.g., how Dixie helps MJNA in its acquisition of loans by providing collateral), so those who have not listened to it might want to do so.
I can understand your concerns. I'm worried about what they'll say in the upcoming report, too. Michelle made clear in her update that management knows what shareholders' concerns are. She knows that everyone is beating at the door demanding more detailed financials, an explanation of the CannaVEST that makes the $5 CANV price seem reasonable, and clear answers to some of the accusations raised in SA articles. To release another report that doesn't enable investors to definitively, quantitatively justify MJNA's various actions and claims could serve as the last straw for many investors and lead to a significant drop in the PPS. I hope, however, that management will come through this time and genuinely clear things up.
Still, I don't understand why you're not at least trying to get in and out quickly for a 10-20% short-term gain. You got out at 16.1 cents, right? There was a point while the price was 15-point-something cents when it was pretty obvious that the momentum was going to carry the price up a bit. At this point, some of negativity and suspicion engendered by Brochstein and Eassa's recent articles has subsided a bit. Brochstein has even been slipping some positive comments into his latest iHub posts. We know management is aware of everyone's concerns, that management knows what it needs to say in order to prevent the PPS from falling, and that management has an interest in preventing the PPS from falling since it uses its shares to fund some of its activities. Also, many of the pumper websites have begun posting about MJNA. Looking at all of this together, I think there's a very high probability that the price will rise more prior to this week's release of the audited financials. You really should have bought in at 15-point-something when you had the chance, but now it's probably not too late to get in and make a quick profit. If you're really worried that management will not exhibit sufficient transparency in the upcoming report to sustain the PPS, why not just buy in now and sell on the day the report comes out or perhaps right before the report comes out?
Today the price will very likely exceed the price at which you sold your shares. This might be the last day you can get back in with more shares than you originally had.
Shayne Heffernan (HeffCap, China Gold Fund) released a short report today indicating that (based on the RSI, stochastic oscillator, CCI, and MACD) MJNA is approaching oversold territory and could be due for a rally soon.
Has anyone here ever come across Heffernan's detailed views on MJNA? I know he's bullish on MJNA long-term; he indicates this in his post. However, I don't know what his views are regarding the various accusations and other issues MJNA is facing.
Maybe Dixie could get Snoop to do an advertisement.
Unfortunately, what will happen next depends primarily upon the size of the resistance that currently is sitting near 27 cents (per VNDM and others). The company and/or a holder of an enormous number of shares has been sitting on the ask for days and days and days. If it weren't for this, we'd easily be above 30 cents right now, and whether we have another break-out to above 30 or 40 cents in the wake of all the good news that has come out and is yet to come out this month depends on how much these "dumpers" have left to sell.
"Huge tranactions"? I think I've seen that video before. Shot in Thailand, right?
From a legal standpoint, the CBD-oil products are not classified as medicine. This is a good thing. It frees MJNA up from having to conduct various types of testing in order to meet various standards, and it also increases the advertising claims they can make regarding their products without being sued. I already explained this to you.
According to what definition are you claiming that the products are not medicine? If a product contains one or more compounds that effectively decrease or eliminate a medical problem, then according to most people's notion of what constitutes a medicine, that product is a medicine. By this definition, any product containing THC can easily qualify as a medicine. As for the products containing other cannabinoids, studies have to be done to determine whether they have the medicinal effects they're purported to have, and whether any particular CBD-oil containing product has those effects depends on concentration, dosage, and the particular CBDs in the product. Do you have some sort of special knowledge regarding the contents of MJNA's CBD-oil products that enables you to know they don't qualify as medicine in this sense?
You're able to see the actual number of shares that VNDM has for sale?
You are incorrect. MJNA does make products that can contain THC, and those products are sold in places where THC is legal.
The CBD-oil products don't contain THC but do contain other cannabinoid compounds. Whether these CBD-oil products actually have the anti-inflammatory, pain-relieving properties they're purported to have is not something that you or I can determine at this point. Some cannabinoid compounds do have anti-inflammatory, pain-relieving properties, but whether any particular CBD-oil product has these effects depends on the concentration of CBD compounds in the product, which particular CBD compounds are present, and of course the dosage consumed.
Investors in MJNA should be glad that CBD-oil products are not classified by the government as medicine. As most people are well aware, the nutritional supplement industry in the US is not well regulated. This is probably a bad thing for consumers, but for a company in the industry, it makes doing business much easier and much less expensive. The companies can makes health claims regarding their products and they're not subject to expensive product testing requirements and standards. MJNA would be stupid to not aim to have their CBD-oil products classified as nutritional supplements.
MJNA's update stated that the Q1 earnings are significantly greater than the previous quarter's earnings -- not just "greater than," but "significantly greater than." At this point, it's an easy prediction to say the PPS will rise substantially after the Q1 numbers come out. VNDM's giant ask at $0.268 (while annoying in that it's currently preventing the PPS from going up) is a gift to those who want to buy in and earn an easy 20% to 50% profit over a period of just a couple of weeks.
That was not a run-on sentence, though it did contain some other grammatical errors.
This is not the Q1 report, zgoldies2. I'm just guessing (sarcastic tone here), but that might be the reason for the lack of numbers in this PR.
I know VNDM's reported ask size on level II is not the actual ask size, but is there any relationship between the reported ask size and actual ask size? Are there any rules regarding the reporting of ask and bid sizes on level II, or can VNDM just report any ask size it wants regardless of the actual ask size?
I did my wire tranfer on a Friday afternoon. The next Monday about 30 minutes after the market opened my funds showed up in my Fidelity account ready to use.
Some Tangentially Relevant Info:
When I wired my TD account funds into my Fidelity account, I thought it was going to cost $25 (because of info on the Ameritrade website and because I sent them a message asking about it), so I left that amount in my TD account. The $25 was never deducted from the amount I wired or from my TD account. I asked Ameritrade about it afterwards, and then they said that in this situation it's free.
Also, the first time I tried to wire my account funds to my Fidelity account, I was unable to do so because margin fees still needed to be deducted. I sent Ameritrade a message asking them precisely how much these margin fees amounted to, and they gave me a number. I left that amount in my TD account. A few months later, this amount of money along with the undeducted $25 wiring fee are still sitting in my Ameritrade account.
Incompetence.
Uplisting
When is news regarding the uplisting expected?
Dixie Factory in Massachusetts
I saw a post about this in another forum. Apparently MJNA has opened or will open a factory in Massachusetts. Does anyone know any details of this event? Are there any articles online about it?
Edit: OK, I just overcame my laziness and found the information myself. Here is the excerpt from the Boston Globe article about MJNA:
Tripp Keber, widely considered the king of cannabis-infused products, is also looking East. His Dixie Elixirs & Edibles enterprise earned more than $1 million in 2012 by selling medicated carbonated beverages, infused edibles such as chocolate truffles and fruit lozenges, and other items to roughly 500 medical marijuana dispensaries in Colorado, where medical marijuana has been legal since 2000.
Keber projects his company’s sales will more than triple this year as Dixie Elixirs strikes deals in Arizona, Washington, D.C., Connecticut, and Massachusetts. He is in discussions with six Bay State entrepreneurs, including one in Nantucket, to license the brand and technology.
At Dixie’s Colorado headquarters, molecular biologists wearing white lab coats work with mechanical engineers, chemists, food scientists, and a chef to create dozens of products in a Willy Wonka-like setting. They concoct a rainbow of elixirs, including sparkling pomegranate sodas formulated with up to 75 milligrams of THC (the active ingredient in marijuana) per 12-ounce serving and mandarin orange-flavored energy boosters with about 60 milligrams of THC and as much caffeine as a cup of premium coffee. The standard dose is about 10 milligrams, so such products are not intended to be single-serve.
Keber has more than 40 employees after acquiring four medical marijuana businesses and is negotiating to take over two more. To support the growing empire, Dixie has hired three law firms, five consultants, a graphic designer, and a security company.
“Medical marijuana has created a cottage industry. This business is growing exponentially,” Keber said during an interview in his office, where he proudly showcases Dixie’s most recent honor: a fake marijuana leaf in a snow globe emblazoned with the words “Most Valuable MMJ Business,” awarded by local cannabis consultants. (MMJ is industry shorthand for medical marijuana.)
“Two to three years ago, we couldn’t get someone to return our calls,” Keber said. “Now, on any day, we have three to five vendors calling, e-mailing, or knocking on our door wanting to do business with us.”
Evenkeel: MJNA hasn't really disposed of all that much. Perhaps on paper CannaVEST is a separate entity, but in reality MJNA owns and controls it. The receipt of the FCLS shares ensures this. It also ensures that when CannaVEST makes more money, MJNA makes more money: CannaVEST makes more money --> FCLS shares increase in value --> MJNA books more revenue. You also have to remember that CannaVEST will make a lot of its money by selling CBD oil to MJNA, so when CannaVEST's sales increase, that means an increase in MJNA's sales of CBD-oil-containing products is on the way.
It's not really that mysterious. If you go over to the Yahoo message boards, you can read the posts of individuals who are buying small numbers of shares at higher and higher prices just for laughs. Because the vast majority of shares are owned by MJNA and CannaVEST, it's easy for these individuals to move the price up or down.
Even if the company were trying to pull some scam, they wouldn't be this blatant about it. No one is this stupid. MJNA plans to keep the vast majority of its FCLS shares in order to maintain control of CannaVEST. If they want to sell some of their FCLS shares, they will do so in the distant future when CannaVEST has generated significant earnings from its oil sales, the PPS has risen to a much higher value, and can be maintained there even if a large number of shares are sold.
If you don't think the originally designated $5 PPS is appropriate, consider the following argument for why CannaVEST will be able to generate enough revenue and earnings in the near future to justify this PPS:
Justification of MJNA’s Projected 2013 Revenue from the CannaVEST Deal
I looked on the Alibaba website to find the selling price of hemp oil that has not been standardized to contain a certain percentage of CBDs. Many Chinese and Indian factories sell it for between $25 and $60 per kilogram. Standardized CBD oil containing the CBD concentrations that MJNA has mentioned are generally sold for between $180-$450 per kilogram. It has been suggested by some that the CBD oil produced by MJNA (technically by CannaVEST now) is of a quality that warrants prices much higher than this. I’ve seen prices between $1,000 and $2,000 mentioned, and I’ve even had someone emphatically insisting that it will go for $2,500. However, I don’t have good sources to back up these high prices, and I doubt that MJNA would want CannaVEST to sell them the CBD oil at such high prices, so I’ll just stick with the $180-$450 per kg figure in my calculations below.
In short, if CannaVEST can sell its CBD oil for between $180 and $450 per kg, MJNA's seemingly arbitrary valuation of FCLS at $5 per share seems reasonable if one assumes even a small amount of growth in CannaVEST’s oil production capacity during the next year or so. MJNA mentioned in the June 28th shareholder update that they will be able to produce oil at a rate of 6,000 kg per year by January 13, 2013. At the time of the June 28th shareholder update, they also already had some oil on hand, but I’ll stick with the 6,000 kg/year figure just to be conservative. If MJNA's oil production is 6,000 kg in 2013, that's $1,080,000 in revenue at $180/kg and $2,700,000 in revenue at $450/kg, giving CannaVEST revenue per share of between 15.4 cents and 38.6 cents (assuming 7,000,000 outstanding shares). For the sort of high-grade, standardized CBD oil being produced, production, testing, and so on can eat up 50% of this revenue, leaving CannaVEST with earnings of between 7.7 and 19.3 cents per share. At a PPS of $5 for FCLS, this gives a P/E value of between 64.82 and 25.92. I think these P/E figures are not too high for a company that is still in the beginning stages of its growth and expansion. It seems safe to assume that CannaVEST’s hemp farm acreage and oil production rate will increase considerably in the next year or two, which will actually render the P/E values low if the PPS for FCLS is held at $5. So, perhaps MJNA and CannaVEST's seemingly arbitrary valuation of FCLS shares at $5 per share is not so unrealistic after all (it seems conservative), which means the projected $35,000,000 in revenue from the CannaVEST deal is real.
Revenue from CannaVEST Deal is Legitimate
Slyder009: They'll likely pay the entire $35 million in FCLS stock. This may worry some investors since CannaVEST doesn't appear to have sufficient value and earnings to maintain its stock price at around $5 if MJNA decides to sell many of its FCLS shares in the future. However, if you do some simple calculations using information MJNA has provided in the past and external information regarding the production costs and sale prices of CBD oil, you can see that the $5 PPS is reasonable. Examine the calculations below.
Justification of MJNA’s Projected 2013 Revenue from the CannaVEST Deal
I looked on the Alibaba website to find the selling price of hemp oil that has not been standardized to contain a certain percentage of CBDs. Many Chinese and Indian factories sell it for between $25 and $60 per kilogram. Standardized CBD oil containing the CBD concentrations that MJNA has mentioned are generally sold for between $180-$450 per kilogram. It has been suggested by some that the CBD oil produced by MJNA (technically by CannaVEST now) is of a quality that warrants prices much higher than this. I’ve seen prices between $1,000 and $2,000 mentioned, and I’ve even had someone emphatically insisting that it will go for $2,500. However, I don’t have good sources to back up these high prices, and I doubt that MJNA would want CannaVEST to sell them the CBD oil at such high prices, so I’ll just stick with the $180-$450 per kg figure in my calculations below.
In short, if CannaVEST can sell its CBD oil for between $180 and $450 per kg, MJNA's seemingly arbitrary valuation of FCLS at $5 per share seems reasonable if one assumes even a small amount of growth in CannaVEST’s oil production capacity during the next year or so. MJNA mentioned in the June 28th shareholder update that they will be able to produce oil at a rate of 6,000 kg per year by January 13, 2013. At the time of the June 28th shareholder update, they also already had some oil on hand, but I’ll stick with the 6,000 kg/year figure just to be conservative. If MJNA's oil production is 6,000 kg in 2013, that's $1,080,000 in revenue at $180/kg and $2,700,000 in revenue at $450/kg, giving CannaVEST revenue per share of between 15.4 cents and 38.6 cents (assuming 7,000,000 outstanding shares). For the sort of high-grade, standardized CBD oil being produced, production, testing, and so on can eat up 50% of this revenue, leaving CannaVEST with earnings of between 7.7 and 19.3 cents per share. At a PPS of $5 for FCLS, this gives a P/E value of between 64.82 and 25.92. I think these P/E figures are not too high for a company that is still in the beginning stages of its growth and expansion. It seems safe to assume that CannaVEST’s hemp farm acreage and oil production rate will increase considerably in the next year or two, which will actually render the P/E values low if the PPS for FCLS is held at $5. So, perhaps MJNA and CannaVEST's seemingly arbitrary valuation of FCLS shares at $5 per share is not so unrealistic after all (it seems conservative), which means the projected $35,000,000 in revenue from the CannaVEST deal is real.
I think the two-week outlook depends mostly on the company's ability to put to rest investors' concerns regarding the CannaVEST deal and the revenue claimed therefrom. Many investors feel the revenue isn't legitimate because CannaVEST won't be able to generate sufficient earnings to maintain a $5 PPS if more FCLS shares are sold on the open market; however, I think that by doing some calculations using the scant information that MJNA has provided us and some outside information regarding the production costs and sale price of CBD oil, one can reasonably conclude that CannaVEST will be able to generate sufficient earnings. Below is a message I posted before with the calculations I just mentioned:
I looked on the Alibaba website to find the selling price of hemp oil that has not been standardized to contain a certain percentage of CBDs. Many Chinese and Indian factories sell it for between $25 and $60 per kilogram. Standardized CBD oil containing the CBD concentrations that MJNA has mentioned are generally sold for between $180-$450 per kilogram. It has been suggested by some that the CBD oil produced by MJNA (technically by CannaVEST now) is of a quality that warrants prices much higher than this. I’ve seen prices between $1,000 and $2,000 mentioned, and I’ve even had someone emphatically insisting that it will go for $2,500. However, I don’t have good sources to back up these high prices, and I doubt that MJNA would want CannaVEST to sell them the CBD oil at such high prices, so I’ll just stick with the $180-$450 per kg figure in my calculations below.
In short, if CannaVEST can sell its CBD oil for between $180 and $450 per kg, MJNA's seemingly arbitrary valuation of FCLS at $5 per share seems reasonable if one assumes even a small amount of growth in CannaVEST’s oil production capacity during the next year or so. MJNA mentioned in the June 28th shareholder update that they will be able to produce oil at a rate of 6,000 kg per year by January 13, 2013. At the time of the June 28th shareholder update, they also already had some oil on hand, but I’ll stick with the 6,000 kg/year figure just to be conservative. If MJNA's oil production is 6,000 kg in 2013, that's $1,080,000 in revenue at $180/kg and $2,700,000 in revenue at $450/kg, giving CannaVEST revenue per share of between 15.4 cents and 38.6 cents (assuming 7,000,000 outstanding shares). For the sort of high-grade, standardized CBD oil being produced, production, testing, and so on can eat up 50% of this revenue, leaving CannaVEST with earnings of between 7.7 and 19.3 cents per share. At a PPS of $5 for FCLS, this gives a P/E value of between 64.82 and 25.92. I think these P/E figures are not too high for a company that is still in the beginning stages of its growth and expansion. It seems safe to assume that CannaVEST’s hemp farm acreage and oil production rate will increase considerably in the next year or two, which will actually render the P/E values low if the PPS for FCLS is held at $5. So, perhaps MJNA and CannaVEST's seemingly arbitrary valuation of FCLS shares at $5 per share is not so unrealistic after all (it seems conservative), which means the projected $35,000,000 in revenue from the CannaVEST deal is real.
Justification of MJNA’s Projected 2013 Revenue from the CannaVEST Deal
I looked on the Alibaba website to find the selling price of hemp oil that has not been standardized to contain a certain percentage of CBDs. Many Chinese and Indian factories sell it for between $25 and $60 per kilogram. Standardized CBD oil containing the CBD concentrations that MJNA has mentioned are generally sold for between $180-$450 per kilogram. It has been suggested by some that the CBD oil produced by MJNA (technically by CannaVEST now) is of a quality that warrants prices much higher than this. I’ve seen prices between $1,000 and $2,000 mentioned, and I’ve even had someone emphatically insisting that it will go for $2,500. However, I don’t have good sources to back up these high prices, and I doubt that MJNA would want CannaVEST to sell them the CBD oil at such high prices, so I’ll just stick with the $180-$450 per kg figure in my calculations below.
In short, if CannaVEST can sell its CBD oil for between $180 and $450 per kg, MJNA's seemingly arbitrary valuation of FCLS at $5 per share seems reasonable if one assumes even a small amount of growth in CannaVEST’s oil production capacity during the next year or so. MJNA mentioned in the June 28th shareholder update that they will be able to produce oil at a rate of 6,000 kg per year by January 13, 2013. At the time of the June 28th shareholder update, they also already had some oil on hand, but I’ll stick with the 6,000 kg/year figure just to be conservative. If MJNA's oil production is 6,000 kg in 2013, that's $1,080,000 in revenue at $180/kg and $2,700,000 in revenue at $450/kg, giving CannaVEST revenue per share of between 15.4 cents and 38.6 cents (assuming 7,000,000 outstanding shares). For the sort of high-grade, standardized CBD oil being produced, production, testing, and so on can eat up 50% of this revenue, leaving CannaVEST with earnings of between 7.7 and 19.3 cents per share. At a PPS of $5 for FCLS, this gives a P/E value of between 64.82 and 25.92. I think these P/E figures are not too high for a company that is still in the beginning stages of its growth and expansion. It seems safe to assume that CannaVEST’s hemp farm acreage and oil production rate will increase considerably in the next year or two, which will actually render the P/E values low if the PPS for FCLS is held at $5. So, perhaps MJNA and CannaVEST's seemingly arbitrary valuation of FCLS shares at $5 per share is not so unrealistic after all (it seems conservative), which means the projected $35,000,000 in revenue from the CannaVEST deal is real.
Justification of MJNA’s Projected 2013 Revenue from the CannaVEST Deal
I looked on the Alibaba website to find the selling price of hemp oil that has not been standardized to contain a certain percentage of CBDs. Many Chinese and Indian factories sell it for between $25 and $60 per kilogram. Standardized CBD oil containing the CBD concentrations that MJNA has mentioned are generally sold for between $180-$450 per kilogram. It has been suggested by some that the CBD oil produced by MJNA (technically by CannaVEST now) is of a quality that warrants prices much higher than this. I’ve seen prices between $1,000 and $2,000 mentioned, and I’ve even had someone emphatically insisting that it will go for $2,500. However, I don’t have good sources to back up these high prices, and I doubt that MJNA would want CannaVEST to sell them the CBD oil at such high prices, so I’ll just stick with the $180-$450 per kg figure in my calculations below.
In short, if CannaVEST can sell its CBD oil for between $180 and $450 per kg, MJNA's seemingly arbitrary valuation of FCLS at $5 per share seems reasonable if one assumes even a small amount of growth in CannaVEST’s oil production capacity during the next year or so. MJNA mentioned in the June 28th shareholder update that they will be able to produce oil at a rate of 6,000 kg per year by January 13, 2013. At the time of the June 28th shareholder update, they also already had some oil on hand, but I’ll stick with the 6,000 kg/year figure just to be conservative. If MJNA's oil production is 6,000 kg in 2013, that's $1,080,000 in revenue at $180/kg and $2,700,000 in revenue at $450/kg, giving CannaVEST revenue per share of between 15.4 cents and 38.6 cents (assuming 7,000,000 outstanding shares). For the sort of high-grade, standardized CBD oil being produced, production, testing, and so on can eat up 50% of this revenue, leaving CannaVEST with earnings of between 7.7 and 19.3 cents per share. At a PPS of $5 for FCLS, this gives a P/E value of between 64.82 and 25.92. I think these P/E figures are not too high for a company that is still in the beginning stages of its growth and expansion. It seems safe to assume that CannaVEST’s hemp farm acreage and oil production rate will increase considerably in the next year or two, which will actually render the P/E values low if the PPS for FCLS is held at $5. So, perhaps MJNA and CannaVEST's seemingly arbitrary valuation of FCLS shares at $5 per share is not so unrealistic after all (it seems conservative), which means the projected $35,000,000 in revenue from the CannaVEST deal is real.