Medical Marijuana Inc (OTCMKTS:MJNA) Reverses After Big Spike
On Tuesday Medical Marijuana Inc (OTCMKTS:MJNA) registered a very sizable spike on the charts. The company’s share price soared nearly 60% but yesterday’s session put the rains back on the stock. MJNA remained heavily traded, with 29 million shares changing hands yesterday, but closed 6.5% in the red.
There is no real reason behind the stock’s Tuesday move, apart from the general excitement in the marijuana sector. This excitement was due in part to the Ohio ballot that took place yesterday. Ohio residents were voting on marijuana legalization but to the disappointment of all pot stock enthusiasts, the vote failed.
Whatever impact people’s expectations about the outcome of the complicated voting situation were, it’s strange that this sort of thing affected MJNA in such a big way in the first place. The company has been dropping far more important announcements and traders did not so much as bat an eye at them, with daily volume never reaching that of Tuesday.
The chief reasons behind this are likely the disappointing last quarterly the company put up, which showed that despite its $100 million valuation as an asset, Kannaway is simply not generating much sales. The company incurred significant litigation settlement expenses in its last reported quarter but that does not affect the significant top line shrink.
MJNA went from 1.78 billion shares in March to 1.85 billion in June. The company’s next report is due in just over a week and it will be one last chance for Kannaway to show that it was actually a worthwhile acquisition.