Medical Marijuana, Inc. (PINK:MJNA) Refuses to Move
In yesterday’s session Medical Marijuana, Inc. (PINK:MJNA) closed virtually flat, inching less than half a cent up to a close of $0.44. The stock moved less than a percent up on its lowest daily volume for the month.
MJNA took a bit of a nose dive in early trading, slipping 5 cents down. The stock recovered, then went through a series of smaller hiccups until it mostly stabilized in the afternoon. Volume for the day fading by 50% may indicate some hesitation among traders as the stock hands in a delicate balance. Some may find the reason for the lower volume in yesterday’s St. Valentine celebration, but it’s difficult to justify low activity with enamored penny traders.
Overly eager investors on discussion boards are already tossing around hyper-optimistic posts about reaching a dollar in a few short days, which considering the repeated stumble at $.50 looks like a highly improbable scenario, as well as very unhealthy. A large portion of the optimistic buzz is caused by the announcement for a yearly shareholder update to be issued on Sunday, February 17. In addition to the full year 2012 results, this will contain what is announced as the company’s first annual projections for the coming two years.
Considering part of the audited even if somewhat sparse Q4 report mentions the sale of the company’s entire inventory of hemp oil for a total of $35 million, of which only a first installment of $4.5 million has reportedly been made, investors are hoping the projection figures they see are huge. Even if that is the case, projections remain just that – future possibilities. Even if MJNA mostly followed up on their previous pre-announcement for Q4, making estimations for two full years ahead is a different matter, especially in a volatile sector.
There are various factors that may affect the company in the following months, both positively and negatively, including legislative developments and MJNA‘s possible uplisting from pink to OTC tier.