Marijuana Company Of America Inc (OTCMKTS:MCOA) Making A Comeback

Marijuana Company of America Inc (OTCMKTS:MCOA) had one of the most brutal corrections across the cannabis space after the November elections. The stock went vertical in the run up to the November ballot and hit $.1985 a share, only to then correct hard and fall back just as quickly. Since December, the stock has traded between $.05 and $.10 a share. Each dip has proven to be a buying opportunity for investors. As the stock looks to heat up again, we're taking another look at this cannabis runner.First up, a little background on the company. Marijuana Company of America is a publicly traded company headquartered in Southern California. MCOA will distribute marijuana and products related to marijuana as well as CBD and hemp, using a variety of marketing approaches to distribute on a global basis. The company’s CEO is Donald Steinberg, who was the founder of Medical Marijuana Inc (OTCMKTS:MJNA).The first focus for the company is its hempSMART brand, which represents MCOA’s non-THC, hemp derived, product line. All hempSMART products are formulated with a cannabinoid base that is derived from hemp and has less than a .3% THC content. hempSMART Brain is formulated with CBD or Cannabidiol as the core ingredient combined with high quality branded ingredients to compliment the CBD to support brain health. hempSMART Brain is formulated to meet the growing demand for neutraceutical products that assist in brain function. This is a first-of-its-kind product with a synergistic blend of natural brain support ingredients, blended with water soluble CBD to provide optimal bioavailability for brain support and protection.The second focus is cultivation and processing. Last month, MCOA entered into a non-binding Letter of Intent while performing due diligence to finalize a joint venture agreement with Bougainville Ventures, Inc. for the purpose of housing tenant growers engaging in the cultivation, processing and commercial availability of legal marijuana in the State of Washington. The terms of the LOI are that MCOA will invest up to $1 million in cash in a newly formed entity and receive 50% equity ownership and 50% share in net profits produced by the joint venture. Bougainville Ventures, Inc. will contribute its expertise in establishing facilities related to the production, processing and management for tenant growers utilizing an I-502 Tier 3 license, with leased property, established partnerships, licensing agreements and marketing relationships. CEO Donald Steinberg said:

"We are looking forward to getting seed in the ground and ramping up this partnership with Andy Jagpal and Bougainville Ventures. This partnership further strengthens our supply chain and enables MCOA to produce the highest quality products at the lowest possible prices. As each new partnership is formed, synergistic benefits will develop organically. Our human, agricultural and technical resources will expand with the end result being the ability to cultivate superior products for the cannabis consumer in each state in accordance with their respective laws. Knowing how to manage the many individual cannabis markets effectively and simultaneously will be the key to success for MCOA's national rollout. By integrating and aggressively harnessing the collective resources of our companies, we are confident that we will be making a significant impact on sales and distribution in Washington State."

The third focus for MCOA is its affiliate marketing platform, Club Harmoneous. MCOA aims to do for cannabis what Herbalife Ltd (NYSE:HLF) has done for weight loss. With Steinberg’s experience in the affiliate market biz, we believe MCOA is well-positioned to achieve its goals. The multi level marketing (MLM) model has proven successful and there’s no shortage of Americans looking for a second income stream. Distributors will buy stock of hempSMART, then sell it to customers as a sort of run-your-own-business program. They are also encouraged to recruit other distributors, and they pick up a percentage of the for-sale product that their recruited distributors sell to their own customers.MCOA’s MLM model might have the company positioned better than other cannabis names in the industry. Green Rush 2.0 has seen a wave of legalization initiatives pass last November. California, Massachusetts, Maine, and Nevada all voted to legalize marijuana for recreational use, while North Dakota, Arkansas, Montana, and Florida voted for medical use. This creates plenty of opportunities for MCOA to recruit new members and sell its hempSMART brand of products.Currently trading with a market cap of $88 million, MCOA has developed a distinct trading pattern over the past few months. With MCOA bouncing off the lower end of this trading range, MCOA is looking like a good risk/reward setup for cannabis investors. We will be updating our subscribers as soon as we know more. For the latest updates on MCOA, sign up below!Disclosure: We have no position in MCOA and have not been compensated for this article.