Medical Marijuana, Inc. (OTCMKTS:MJNA) Tumbles Post Spike
After three heated sessions culminating with a 22% green close on the first trading day of the new year, on Friday the share price of Medical Marijuana, Inc. (OTCMKTS:MJNA), along with almost the entire hemp stock sector, slid back down. MJNA closed its last session 20% down, moving a share volume far above its average, at 60 million shares changing hands.
What is taking place across the marijuana stock segment of the market should not come as a big surprise to people keeping a closer eye on the tickers in it. The last few sessions sent every stock that is in any way related to the green plant through the roof. As we previously explained, this was largely related to the first legal sale of recreational-use marijuana in the state of Colorado that took place on Jan. 1.
Pot stocks climbed on a nondescript sense of general euphoria related to the sale event. Once again, regardless of the companies’ particular type of involvement in the sector or the percentage of their operations that have to do with marijuana, the tickers ran up the charts. MJNA was among those that are not involved in THC-rich marijuana products – i.e. recreational use products.
The quick correction taking place across the board shows both that trading on hype is never a good idea and that the confidence level in pot stocks is low enough that many are willing to sell as soon as the price catches a breath of fresh air. While further jumps are completely possible, it’s difficult to imagine that the sector’s immediate future will be anything but a roller coaster ride.
One of the few marijuana companies that managed to survive Friday’s massacre and close up was Growlife, Inc. (OTCBB:PHOT). PHOT was also the most heavily traded OTC stock overall, at $16.2 million in generated dollar volume. MediSwipe, Inc. (OTCMKTS:MWIPD) also sprang into heavy-volume trading in the new year. So far it’s managed to hold up but the price that tripled over two sesisons may prove difficult to sustain. Most other pot stocks dropped the ball on Friday. Hemp, Inc. (OTCMKTS:HEMP) closed 16% down, Cannabis Science, Inc. (OTCMKTS:CBIS) slipped by nearly a quarter. Tranzbyte Corp. (OTCMKTS:ERBB) ended the session 21% down.