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Medical Marijuana Inc (OTCMKTS:MJNA): Two Ways To Play It

Medical Marijuana Inc (OTCMKTS:MJNA): Two Ways To Play It
Written by
Chris Sandburg
Published on
March 2, 2017
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Medical Marijuana Inc (OTCMKTS:MJNA) had a bit of a disappointing start to 2017, with the company's shares falling from $0.2 a piece at the turn of the year to $0.11 at the end of February. With the fresh month, however, has come some degree of reprieve, and the Medical Marijuana currently trades for a 13% premium to its End-Feb lows.There are two sides to this story, and we're going to look at both here in an attempt to figure out what's next.So, the decline (and especially the recent selling pressure) came as a direct result of the recent comments made by the Trump administration regarding recreational marijuana. We won't go into the politics of the situation here, but by way of a brief overview, Trump has expressed his concerns over lax control and regulation in the space, especially in the wake of the recent (end last year) recreational legalization ballots. Markets have interpreted this as negative across the board for the cannabis industry. We're not surprised about this – markets interpreted the recreational ballot outcomes as positive across the board, however tenuous a company's link might have been to recreational cannabis consumption – and sold off on the space as a result.This company lost more than 20% of its value on theses administration comments alone.There's an opportunity here, and it's rooted in recovery. The company just put out a press release outlining its relative insulation from any government action in the recreational cannabis space. Its product is 100% legal (hemp derived CBD) as a medical product, and tighter recreational regulation isn’t going to limit sales potential. If markets want to sell off on Medical Marijuana under the false impression that it will, we're happy to look at the decreasing PPS as a deepening opportunity to get in at a discount.That's the first side of the story.The second, and this one's a far more micro input, is rooted in Brazil. It's also likely responsible for the recent boost in price we've seen at the start of March.Medical Marijuana announced on February 28 that that the Brazilian government has approved a prescription for one if its cannabidiol (CBD) oil products, a product called Real Scientific Hemp Oil (RSHO), to treat a patient in the country with a condition called Autism Spectrum Disorder (ASD). ASD is just the newer term for the autism related conditions many readers will be more familiar with – Asperger's, Autism, Pervasive development disorder, all those. They're now bunched into a supposedly more politically correct term – the ASD in question.So why is this a big deal? Well, there's mounting evidence that hemp oil, and specifically the formulation that Medical Marijuana is using to treat this ADS affected Brazilian patient, is an effective therapy for the full spectrum of the condition. Studies are ongoing in Israel right now, as well as in Mexico, to prove this evidence, and they seem to be doing just that.That the Brazilian government is willing to let Medical Marijuana treat patients with ASD, even if it's just one, shows both an openness to this sort of treatment that hints at a large potential market, and an in-route to said market for this company specifically.This is just a small part of this company's operations, of course. There's Kannalife, and the the stake that Medical Marijuana holds in Axim Biotechnologies Inc (OTCMKTS:AXIM). Both of these are potential growth drivers as we move forward, and just as with the above, both are relatively insulated from the Trump administration, whatever it decides to do about the recreational space.So, what's next?Well, there are a couple of ways to play this. Markets are going to take what Trump says as negative for medical cannabis companies, despite their fundamental insulation. That means that, near term, we're probably going to see a little bit more weakness. There's going to be a floor, however, and it's going to come soon.The first play, then, is to load up on the way down in anticipation of the floor. The second is to wait until things turn around, and pick up at or around said floor. We're going to keep an eye on the company's releases to try and pick the bottom.We will be updating our subscribers as soon as we know more. For the latest updates on MJNA, sign up below!Disclosure: We have no position in MJNA and have not been compensated for this article.

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