Marijuana Company Of America Inc (OTCMKTS: MCOA) market prospects and sentiments have turned sour if its performance the past year is anything to go by. The stock has shed more than 80% in market value having succumbed to soaring short selling pressure.
MCOA Share Price Analysis
Amidst the underperformance, the management has continued to explore new ways of establishing the company as a major player in the cannabis arena. Acquisitions are now seen as the best option, for reinvigorating the company’s waning prospects.
Marijuana Company of America has sought to strengthen its prospects in California’s burgeoning pot market with the acquisition of stakes in Natural Plant Extract. While the acquisition is a key driver of recent price action activity, the stock’s sentiments also appear to have received a boost on the company-securing patent for its flagship product hempSMART Brain.
Expansion into the U.K in pursuit of sales opportunities is another development that underscores the company’s push for value in the multi-billion industry.
A string of positive developments has helped shore the stock’s sentiments if a spike in trading volume and share price is anything to go by. The $0.01 has since emerged as a crucial support level from where the stock is trying to bounce back.
Given the underperformance of last year, the stock needs to rise and stabilize above the $0.03 level, to turn bullish. Above the critical resistance level, Marijuana Company of America remains well positioned to continue climbing the ladder.
Below the $0.03 mark, the stock remains vulnerable to further drops given the underlying long-term bear trend.
What Does Marijuana Company of America Do?
Marijuana Company of America manufactures and sells hemp derived and non-psychoactive cannabinoid consumer products. Its flagship product is hempSMART Brain a personal care product for brain wellness. The company also boasts of a diverse line of hemp products under the hempSMART brand.
What Next For Marijuana Company of America
Marijuana Company of America has underperformed even on the broader sector turning bullish in 2019. While the underperformance is a point of concern, one cannot dispute the fact that the company is destined for greatness.
The acquisition of a 20% stake in Natural Plant of Extract of California is a clear indication of how the company remains focused on pursuing opportunities for growth. With the acquisition, the two have agreed to form a joint venture dubbed Viva Buds. The joint venture will operate as a cannabis delivery service from which the two will share profits in a 50-50 basis.
“This partnership will enable MCOA to establish itself as a major player in the cannabis arena. The NPE team has a great deal of industry knowledge and has an industry disruptive business model. This is a huge strategic move for MCOA,” said Donald Steinberg, CEO of MCOA.
Even as Marijuana Company of America turns to strategic partnerships to strengthen its prospects, it has also set sights on the U.K market in pursuit of sales opportunity for its hempSMART brand. The company has already established a regional office equipped with sale and customer service personnel tasked with the responsibility of addressing the growing demand for hempSMART products.
U.K launch kick starts the company’s push for sales opportunities across Europe.
“As legislation continues to evolve and the demand for hemp derived CBD products grow internationally, we will continue to launch our hempSMART associate marketing model and products to additional countries across the world,” Steinberg stated.
The company has already secured a United States Patent and for its flagship CBD hemp product hempSMART, Brain as it embarks on an aggressive marketing campaign.
The company remains well positioned to attract a significant amount of sales with the product given that it is formulated to enhance brain function.
Marijuana Company of America is still languishing at the $0.01 level but with tremendous potential to spike higher. The acquisition of stakes in Natural Plant Extract is a development that should strengthen the company’s sentiments among investors, consequently fuel the upward momentum.
The company moving to target sales opportunities in Europe with its flagship CBD flagship product, hempSMART Brain, is another development that should continue to excite investors. Renewed investor interest in the wake of recent developments alludes to a potential breakout from current lows.
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Disclosure: We have no position in MCOA and have not been compensated for this article.