Medical Marijuana (MJNA)
Medical Marijuana (MJNA) has a great name for sucking in anyone looking to play the legalization of marijuana with marijuana stocks. That alone drives demand, facts be damned. MJNA is up almost 90% for the year-to-date.
The nominal price (29 cents per share) alone should scare any reasonable person away, but there are other problems with betting MJNA as a marijuana stock — and that’s after the fact the president stepped down after a federal grand jury indicted him as part of an alleged $10 million mortgage fraud.
Like all these marijuana stocks, MJNA took off after Colorado and Washington state legalized weed. But MJNA derives no income from this legalization at all. Like CannVest, it sells oil and gum based on hemp. It’s another marijuana stock that has nothing to do with marijuana. Indeed, MJNA has said it won’t consider selling cannabis until it’s legalized at the federal level.
And since when does it make sense for a company with “gross” income of approximately $8.1 million to have a market cap of $270 million?