Medical Marijuana Inc (MJNA)

[Alan Brochstein]

Here is why people lost money:

JUST WHY DID MANY MJNA Investors LOSE A LOT OF MONEY???

*Evil, stupid SA bloggers who are clueless
*Mean, manipulative market makers like VNDM
*Alcohol and Tobacco companies with their agendas
*The right-wing anti-pot people who are trying to stifle the movement

OR

The stock was in a bubble and the company contributed to the hype with its pumped up outlook in February and with its three-card monte style transaction to create CannaVest followed by really lousy sales. Also, the company disclosed an internal review (and now SEC inquiry) way after the fact - not until May, though it actually began in January.

It's really simple. Is this company truly worth $160mm at this time? If you think so, buy it. If, like me, you don't think so, then don't buy it. MJNA could be a great stock again, but the company needs to get around several issues. It's certainly not a scam like many of the others in the sector. Still, they aren't getting traction yet with their products and funding growth initiatives seems challenging until they do, as they are capped out on their share issuance, have little cash and no credit lines disclosed. Traders should be leery of selling, as the company disclosed it hasn't sold the 47mm shares issued earlier this year to CanChew. Investors should also make sure that they are comfortable with what's going on with CannaVest, which reported sales of only $108K last quarter. MJNA told us that the CannaVest deal would save "$10mm in expenses" this year. With those costs gone, one would think MJNA would be showing some kind of profits. Instead, they posted an operating loss in Q2.

I share a lot of facts, not just opinion. Maybe my opinion, which is based on the facts I share, is wrong - I am the first to admit that it is impossible to be right all the time. In my view, the reason MJNA has dropped so much is pretty clear. They haven't lived up to the promises that they offered or the expectations that investors had. Hopefully they will in the future. I sure have taken many opportunities to point to improvements, and I believe that they continue to try to be more transparent.