Medical Marijuana Inc (OTCMKTS:MJNA) is finally making the run higher that we’ve been looking. Shares traded at the $.04 support level for over two months. As the saying goes, “What can’t go lower, must go higher.” This is certainly ringing true with Medical Marijuana.
The stock is also finally catching up to its peers. At $.054 a share, shares of MJNA are still down almost 5% in a year’s time. Compare this to Terra Tech Corp (OTCMKTS:TRTC), which is up over 200% in the same time period. Smart investors are looking for laggards to catch up as the entire cannabis sector is about to heat up again.
The timing for cannabis investors couldn’t be better. According to a report from a cannabis analytics firm New Frontier and Arcview Market Research, sales of recreational pot shot up 184% year over year, up to $998M in 2015 from $351M in 2014. Colorado and Washington state were responsible for a lot of the industry’s growth, the report said. Colorado tax revenue and recreational sales is predicted to be $135M for 2015, a 77% hike from $76M in revenue in 2014. Washington pulled in $70M in tax revenue. Come November, California, Nevada, Arizona, Massachusetts, Maine, Rhode Island and Vermont are all expected to decide on recreational legalization this year. Florida, Ohio, Missouri, and Pennsylvania will vote on medical legalization in some form.
Furthermore, we’re expecting the DEA to reschedule marijuana some time after the Presidential election in November. We don’t believe the DEA wants to wade into a politically charged issue before then. Eight Democratic senators have urged the DEA and its parent agency, the Department of Justice, to drop marijuana from its Schedule I list of controlled substances. The Schedule I classification undermines research on marijuana’s potential health benefits, they wrote.
As it stands, marijuana is classified a Schedule I, dangerous drug under the confines of the Controlled Substances Act. In the eyes of the federal government, this means that anything derived from the cannabis plant has no medicinal value and a high potential for abuse. Of course, we know this to not be true. A reclassification to Schedule II would give Doctors the ability to prescribe marijuana and would open up the medical marijuana research market. It could also loosen the banking regulations on cannabis stocks and allow for companies like MJNA to up-list to NASDAQ. The NASDAQ’s denial of MassRoots Inc (OTCMKTS:MSRT) earlier this year was most likely due to marijuana being classified as a Schedule I substance.
In California, where MJNA is based, things are really heating up. Proposition 64, which is on the November ballot, would allow people age 21 and older to possess and use up to an ounce of marijuana and would allow pot shops to sell cannabis for recreational use. The initiative also includes a provision that could someday allow cannabis sellers to advertise their products in print ads and on digital sites and radio and television stations. If Californians vote to legalize recreational use, overnight it will triple the size of the US cannabis market. So far, Proposition 64 has widespread support. Lt. Gov. Gavin Newsom (D) and at least four California U.S. representatives are supporting the measure. Most importantly, latest polling data shows 60% of Californians in favor of legalization.
Currently trading with a market cap of $157 million, MJNA has the best name recognition among pot stocks. It’s the first one investors will jump into as Green Rush 2.0 heats up. The company has been featured on almost every major media outlet in the US. Considering the run that TRTC has had this year, we feel that MJNA is not far behind. We will be updating our subscribers with the latest developments from MJNA. Sign up below and get updates on MJNA!
Disclosure: We have no position in MJNA and have not been compensated for this article.