It seems shares of Medical Marijuana (MJNA) are back on the rise once again. And this penny stock is one extremely popular issue at the moment (judging from daily volume).
You see, MJNA currently has a 3-month average daily volume of just over 8.3 million shares.
So why is this stock so popular? And why are shares on the rise again?
I’d say Medical Marijuana is popular simply because of the product the company produces… Medical Marijuana. The lure here may be that potential shareholders think this “new industry” can be capitalized on.
But the jury is still out on this one…
While MJNA may be a popular penny stock right now, the company is losing money. In the quarter ending June 2013, MJNA reported a loss of $342,000 for period.
That’s not really something I’d jump up and down about.
And considering MJNA still doesn’t report with the SEC, I’d be a bit worried about ponying up any cash to buy shares.
Finally, you may want to check out OTC Market’s website to get your next quote on Medical Marijuana…
If you haven’t seen their site, you’ll find the following statement-
Now that certainly doesn’t give me the warm and fuzzies!
Getting back to the action in Medical Marijuana shares…
Since the big votes on the legalization of marijuana in Washington and Colorado, shares simply have soared! Take a look for yourself…
Medical Marijuana (MJNA)
As you can see MJNA jumped from $0.05 about a year ago to nearly $0.15. That’s a clear triple on the news!
But the big jump came in February of this year- on the back of their press release. Take a look at the statement we pulled out…
“The Company earned net income of approximately $3.2 million on record gross revenues of $5.2 million for the quarter ended December 31, 2012. This represents a gross revenue increase of over 1100 percent quarter-over-quarter when compared to revenue of $430,140 for the quarter ended December 31, 2011.”
Once again, an announcement of 1,100% quarter-over-quarter revenue increase would certainly be the cause of such a surge. But as the news aged, and the company failed to report any solid follow up news… the bullish move faded.
This happens with these hyperactive penny stocks…
But now that shares are back on the rise, I issue a strong heed of caution to potential investors… “Caveat emptor” – or let the buyer beware!
No matter how much that spike in the chart entices you for “an easy triple”… remember that MJNA isn’t regulated by the SEC- and there are a pink sheets penny stock.
Simply put- anything can go wrong!