Medical Marijuana Inc (OTCMKTS:MJNA) has lost its spark if recent price action is anything to go by. The stock is back to one-year lows, after succumbing to short selling pressure. With the stock currently flirting with a critical support level, it could be a matter of time before it plunges to two-year lows or bounces back.
MJNA Share Price Analysis
The stock underperformance comes as a surprise given the bullish momentum in the cannabis sector. In addition, the company has served a number of updates that in most cases would have strengthened investors’ confidence in the stock. For starters, the company’s subsidiaries have secured U.S Hemp Authority Certification Seal.
In addition, Medical Marijuana has moved to strengthen its product pipeline with the launch of new cannabis accessories online. In February, the company added more locations to its retail network by securing partnerships with a number of retailers as it moved to strengthen its sales channels.
The stock has however continued to edge lower even on the company moving to strengthen its prospects in the booming cannabis sector. A plunge to the $0.06 level leaves the stock susceptible to further drops. The $0.06 level is a crucial support level from where the stock bounced back last year on its way to highs of $0.10.
Above the $0.06 mark, Medical Marijuana remains well positioned to bounce back. Conversely, a breach of the support level could give short sellers a reason to continue pushing the stock lower, to the $0.04 mark, which is the next support level.
What Does Medical Marijuana Do?
Medical Marijuana is an investment holding company with operations in the medical marijuana and industrial hemp market. The company boasts of a pipeline of proprietary based cannabinoid products. It also licenses its testing genetics labeling and packaging methods to the medical cannabinoid industry.
Amidst the implosion in the stock market, Medical Marijuana has continued to strengthen its prospects in the industry. For starters, the company has added more locations to its retail network through the inking of strategic partnerships with a number of retailers.
Medical Marijuana has inked a strategic partnership with Shopaholic Boutique, which has three retail locations. The deal signed through the company’s wholly owned subsidiary, HempMeds, paves the way for the company to expand its footprint in St Augustine Florida.
“Our subsidiary HempMeds is making great progress thus far in 2019. We foresee the company to continue on this path of upward mobility and continue to increase access to CBD products throughout the U.S,” said CEO Stuart Titus.
In addition to the expansion of the retail distribution network, Medical Marijuana has also moved to strengthen its presence online, in pursuit of additional sales. The company has consequently introduced 29 new herb accessories on its e-commerce website.
The new products that the company intends to sell in the e-commerce platform include high-quality storage containers as well as grinders pipes and vaporizers.
Even as the company continues to strengthen its sales operations, its subsidiary Kannaway HempMeds and Dixie Botanicals have achieved yet another significant milestone. The trio has secured Hemp Authority Certification Seal from the Hemp Authority. The approval comes on the units meeting stringent industry standards, key among them touching on quality and safety of their products.
“Our customers’ safety is our priority, and we are proud to have our high-quality manufacturing processes confirmed so that consumers understand that buying from us means that they have access to safe and accurately labeled hemp-derived products, including fiber, seed, and extracts, such as cannabidiol (CBD),” said Medical Marijuana, Inc. CEO Dr. Stuart Titus.
Medical Marijuana underperformance is a point of concern given that it comes at a time when the overall cannabis sector is trending higher. While the stock remains susceptible to further drops given the underlying long-term bear trend, one cannot dispute the fact that the company is doing well on the business execution front.
The signing of strategic partnerships, as well as the introduction of an array of cannabis accessories on the company’s websites, is a development that strengthens the company’s push for value in the industry. While the stock looks set to remain under pressure in the short term, a bounce back could be in the offing, given that the stock appears to have hit rock bottom.
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Disclosure: We have no position in MJNA and have not been compensated for this article.