Medical Marijuana, Inc. (OTCMKTS:MJNA) Moves Up, Posts PR

517MJNA_chart.pngAfter the share price of Medical Marijuana, Inc. (OTCMKTS:MJNA) hit $0.40 in late January, the ticker went through a few spasms and dropped significantly, hitting $0.26 per share last week. It seems this was also the level where the price managed to brake and shift in higher gear. MJNA put on six cents in four consecutive trading sessions, closing at $0.32 or 4% up at yesterday’s closing bell.

MJNA seemed to bounce more or less naturally, with no new press announcements on the date of the reversal. This could be good news and some sort of indication for what technical enthusiasts may call a support level. Still, in an environment as volatile as penny stocks and pot stocks in particular, such conclusions may be inapplicable.

The company did however publish a new bit of PR yesterday near the opening bell. MJNA chimed in to ‘offer appreciation and praise’ for the moves being made on part of the Department of Justice and the Treasury – specifically the new guidance issued for banks. The release speaks of the ‘tremendous opportunities’ created by those new guidelines. However, in a recent statement Mr. Frank Keating, president of the American Bankers Association, said that while commendable, the guidance does not really change the ‘underlying challenge for banks’ and they still face ‘risk of prosecution and assorted sanctions’.

72MJNA_logo.gifMJNA‘s announcement also underlines that its business will ‘immediately benefit’ from those changes and from the increased traffic at retail marijuana stores that also carry the company’s CBD-rich products. This sort of logic may be debatable, given how the rush was mostly triggered by legal recreational use pot. It remains to be seen how this will influence CBD product sales in the future.

Still, MJNA showed resilience and did not crash too horribly from its $0.40 high, now pushing closer to it once again. Even though volume dropped significantly in the last four green sessions, the price is inching up. MJNA‘s annual report is due soon and will give traders additional insight into the company’s situation.

You may also like...