Medical Marijuana Inc (MJNA)

[NavyMSU]

If we assume our current price range is based on solid fundamentals, its is my opinion that if we double the earnings from one quarter to the next, we would triple the PPS.

It's easier for a company to double 1.19M to 2.4M than it is to double 11.9M to 24M.

If and only if we audit/uplist. Without audit we won't break the 12-16 PE range.

The doubling/outstanding performance would drive investor confidence and that would drive enthusiasm which can be measured by the PE ratio.

Q3 earnings was 1.19M, round up and double: Say Q4 2.4M, 598M SO, multiplying by the earnings by 4 to annualize: With a 12-16 PE
12: (9.6M * 12) = 19.2¢ PPS
16: 598M SO / (9.6M * 16) = 25.6¢ PPS

Now this outstanding quarter over quarter performance will increase enthusiasm and the PPS will be driven higher by at least 50%

PPS of 18: 28.89¢ (almost .30!)
PPS of 24: 38.5¢

That's still a small PE for a growth company with this potential, we could see higher, however federal risk dampens the enthusiasm and will keep it from sustaining higher values.

However, this requires double earnings in light of reinvestment expenses (reduced earnings) and reinvestment rarely has a quarter to quarter turnaround. We would need to see new sales from Phytosphere and/or large increase in sales from Dixie due to all of the press its gotten lately.

This is very possible, albeit slightly over enthusiastic.