Medical Marijuana Inc (MJNA)

[Det_Robert_Thorne]

Went to nearly $0.50 on bogus financials

The reason MJNA went to nearly $0.50 was for several reasons:

1) A January 22, 2013 PR pre-announcing revenue and earnings that improperly called $4.5M of the Cannavest deal "revenue" when it was actually "extraordinary income".

2) A Jan 31, 2013 Seeking Alpha article by Perry Coleman that predicted $56M in revenue in 2013, nearly $620M revenue in 2014, and $3.7B in 2015. Needless to say, his predictions of 1000% growth were based on really faulty assumptions.

3) An auto-generated Reuters stock report that erroneously claimed that MJNA made $7.2B in revenue in the first nine months of 2012 (Note: when I wrote at the time that I thought the $10M in MJNA's reported revenue was "fantastic", we had yet to see that they were incorrectly reporting revenue.)

4) A Feb 8, 2012 PR from MJNA that claimed that they sold CBD oil for $35M, when in reality, it was an asset sale to Cannavest, with something like 90% of the asset value being considered "goodwill" by CannaVest.

Once people, including myself, began to analyze the data and report the truth, the stock began its extended fall.