Price action activity indicates Medical Marijuana Inc (OTCMKTS:MJNA) is a bounce back play, as bulls continue to take the fight to short sellers. Formation of a double bottom signals a turnaround in the direction of trade as the upward momentum continues to gather pace.
Medical Marijuana Price Analysis
The $0.07 level has emerged as a critical support level from where bulls are slowly regaining control from short sellers. In the meantime, the stock faces immediate resistance at the $0.10 level. A breach of the critical resistance level, should reaffirm the emerging uptrend that began late last year.
Above the $0.10 level, the stock should be on its way to 52-week highs of $0.17. On the downside, immediate support is at $0.07. A breach of the critical support level would give short sellers a reason to come back and continue pushing the stock lower, in continuation of the long-term downtrend.
However, if recent price action is anything to go by, then Medical Marijuana could be on its way to breaking out supported by a string of positive developments in the overall industry.
What Does Medical Marijuana Do?
Medical Marijuana is an investment holding company that operates in the medical marijuana and industrial hemp sectors. The company boasts of an array of patented and proprietary based cannabinoid products as well as seeds and high-value extracts, manufactured for pharmaceutical, and nutraceutical industry.
Sales Marketing campaign
Medical Marijuana is a potential bounce-back play on the company embarking on an aggressive marketing campaign that continues to excite the markets. The company’s subsidiary Kannaway is fresh from inking marketing deal with NFL veteran Bryan Barker.
Under the terms of the deal, Barker is to become the company’s spokesperson tasked with the responsibility of spreading awareness of Cannabidiol to athletes and other interested consumers.
“We believe that our partnership with Bryan Barker will help us spread awareness about the wellness benefits of CBD. We look forward to sharing his story and hopefully encouraging others to consider including CBD in their lives,” said Kannaway® CEO Blake Schroeder.
Barker joins Kannaway at a time when the company is planning to spread the awareness of CBD products it offers, to professionals as well as amateur athletes. Medical Marijuana is planning to leverage such deep connections to distribute products to a broader target market as part of its marketing campaign.
In additional to Barker appointment, Medical Marijuana another subsidiary Phyto Animal Health has hired Andrew Orona as its new National Sales Manager. The subsidiary develops a line of cannabidiol hemp, oil supplements and hemp products that target cats, dogs, and horses.
Before his appointment as the National Sales Manager, Orona acted as an independent sales representative for the company. Over the past year, he has helped the company achieve significant sales growth.
Robust Sales Growth
Medical Marijuana embarking on a robust sales operation through its subsidiary builds on a stellar 2018. The company’s subsidiaries led by Kannaway®, HempMeds® Mexico and HempMeds® Brazil generated the largest sales in a year in 2018 having also achieved significant milestones in business operations.
“We are excited to have surpassed our growth and revenue goals for this year. By breaking our annual sales record (unaudited) and investing into our future expansion efforts, we can provide our shareholders with an optimistic forecast for our future success,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus.
Medical Marijuana, on its own, registered a 160% year-over-year increase in sales bookings in 2018. In addition, it was named among the Top 3 hemp producers. In 2018, the company strengthened its product pipeline with the unveiling of new Dixie Botanicals Fruit Flavors Energy picks as well as Gel Capsules.
The company also expanded its footprint in Argentina having secured an imports permit. In Paraguay, the company secured approval for its cannabidiol products as official medicines. Its Kannaway subsidiary registered a 250% year-over-year’s sales bookings growth as HempMeds registered a 20% growth on the same front.
While it is clear, Medical Marijuana has underperformed the industry given the plunge in share price. Recent developments provide clear evidence of a company with a bright future. The company has made impressive strides as it looks to strengthen its sales channels in pursuit of revenues. Year over year growth in sales bookings underlines the company’s long-term prospects.
Shares of Medical Marijuana have made up some ground from all-time lows. With upward momentum gathering pace supported by sales growth optimism, the stock looks set to continue climbing the ladder.
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Disclosure: We have no position in MJNA and have not been compensated for this article.
Image courtesy of Philip Bump via Flickr