Medical Marijuana Inc (OTCMKTS:MJNA) Surges On High Volumes

[[tagnumber 0]][[tagnumber 1]]Medical Marijuana Inc (OTCMKTS:MJNA)’s movements in the charts haven’t been very consistent after the slide that the company endured in December. Late February saw [[tagnumber 2]]MJNA[[tagnumber 3]] try to regain some of the value it had lost, but the ticker began swaying in both directions pretty fast.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]This isn’t something very surprising when you consider the massive market cap that [[tagnumber 2]]MJNA[[tagnumber 3]] holds. The company is valued at $125 million which is quite a lot, especially considering the contents of its balance sheet. [[tagnumber 2]]MJNA[[tagnumber 3]] recently filed its financial report for the fiscal 2015 and it contained the following numbers of prime interest.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 15]] [[tagnumber 16]]cash: $240 thousand[[tagnumber 17]] [[tagnumber 16]]current assets: $13.51 million[[tagnumber 17]] [[tagnumber 16]]current liabilities: $4.72 million[[tagnumber 17]] [[tagnumber 16]]revenues: $9.21 million[[tagnumber 17]] [[tagnumber 16]]net ordinary loss: $3.64 million[[tagnumber 17]] [[tagnumber 26]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]The report shows us that [[tagnumber 2]]MJNA’s[[tagnumber 3]] cash on hand has significantly dropped, while the company keeps giving overly–inflated valuations of its subsidiaries. Meanwhile, the revenues have dropped by 36.57% compared to the previous year, while the losses have increased significantly.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]There is also the fact that [[tagnumber 2]]MJNA[[tagnumber 3]] issued nearly 1.1 BILLION shares in the fiscal 2015, raising the outstanding share count to 2.86 billion. The dilution has been truly heavy in the past year, but that doesn’t seem to bother investors that much.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]Some positive news from yesterday even managed to push [[tagnumber 2]]MJNA[[tagnumber 3]] 10.63% up the charts and we saw the ticker close at $0.0437. A total of 12.07 million shares changed their owners, generating $513 thousand in daily dollar volume, the biggest in quite a while.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]][[tagnumber 2]]MJNA[[tagnumber 3]] has held to its momentum from yesterday and is already 6.41% in the green as of the writing of this article. Still, you should consider the inflated market cap, the not–so–good financial state and the dilution before making any investment decisions.[[tagnumber 4]]