Medical Marijuana Inc (OTCMKTS:MJNA) Slips and Slides
It was fun while it lasted but the latest price hike that Medical Marijuana Inc (OTCMKTS:MJNA) charter is now gone. The Monday spike that sent the stock 58% in the green has now been wiped nearly in full. Yesterday the share price slid over 19% to stop at $0.037 by the closing bell on volume that rapidly faded to 9 million shares.
The intensifying drop was more or less to be expected, as MJNA became heavily overbought within the space of a single day, as it soared Monday. Hopefully investors were not rushing in just because they were anticipating a further, bigger spike, hoping Ohio would legalize marijuana on Tuesday. As everyone interested knows full well by now, the Ohio push to legalize failed, largely because of a complicated voting agenda and two separate issues dubbed issue 2 and 3 that residents voted on.
The reason Ohioans refused to legalize was that the way the proposed legalization plan was set up, it would have given cultivation rights to just a handful of properties, essentially creating a monopoly of sorts. No matter the circumstances, the end result is still the same – Ohio is not legalizing pot.
The combination of a new price level which MJNA had not touched in almost 3 months that presented a nice opportunity to cash some stock, the failed push in Ohio and the stock’s overbought status all combined to trigger the slip and slide.
MJNA‘s next quarterly report is due in a little over a week. The previous one left investors feeling a mix of indifference and disappointment, at least judging by the stock’s chart performance after the filing went public. With sales shrinking QoQ despite Kannaway’s contribution to the top line and a massive $5.6 million in quarterly net loss, MJNA would do well to deliver better performance in its due quarterly.