Top Marijuana Penny Stock with Great Upside Potential
Early marijuana investors got lucky with marijuana penny stocks. But sadly, for those who missed the early-bird discount, these marijuana penny stocks have now graduated into the higher ranks. However, I’ve hunted down one top marijuana penny stock in 2017 that’s still selling for pennies on the dollar. So, my friends, perk up for Medical Marijuana Inc (OTCMKTS:MJNA), because MJNA stock could turn out to be the next multibagger.
But first, a heads-up for those who are new to marijuana investing. Thanks to the medical community, this “sinful” drug has finally managed to break the shackles of social stigma. Marijuana has made its way to the mainstream, where doctors have discovered great benefits in its medicinal properties, particularly to cancer, epilepsy, and AIDS patients.
The cherry on top is the official legalization of medical marijuana in North America. Take note that 29 U.S. states so far have given its medical use a green light, with more states being added to that list. Also, right next door, Canada has already legalized medical marijuana and is going one step beyond with an official country-wide legalization of its recreational use by 2018.
Believe it or not; the growing demand for the drug, particularly for medical use, has led to a “green rush,” which mirrors the gold rush of the 19th century.
In fact, North America has given birth to a multi-billion-dollar industry for marijuana companies in the last year and, seeing this, new marijuana companies are propping up left, right, and center.
Just to give you an idea of how big this market is already, the marijuana industry made $6.7 billion in sales through the last year alone, and is predicted to hit $50.0 billion in sales by 2026.
With that in mind, just imagine the growth prospects of early movers in this industry. MJNA stock deserves special recognition for getting a head start in the race.
Why MJNA Stock Is a Top Marijuana Penny Stock
Medical Marijuana Inc sells itself as the “company of firsts.” Allow me to explain.
The company lays claim to many “firsts” in the marijuana industry. It was not only the first publicly traded marijuana company in the U.S., but it also proclaims to be the first in the country to bring cannabis-based foods and supplements to the mainstream. (Source: “We Are a Company of Firsts,” Medical Marijuana Inc, last accessed May 26, 2017.)
But look beyond its growing success on its home ground, and you’ll find the company making international headlines.
Medical Marijuana Inc has now also become the first public company to introduce medical marijuana products to Mexico, Puerto Rico, Brazil, and Paraguay.
Of particular note is Mexico, where the government legalized medical marijuana just recently. Medical Marijuana Inc operates in Mexico through its subsidiary, HempMeds Mexico.
Medical Marijuana’s primary cash cow is its hemp-based oil called “Real Scientific Hemp Oil” (RSHO). The company sells it in various forms, including oils, tinctures, and capsules.
One of its forms is the drug “RHSO-X,” which has recently been tested on epilepsy-stricken children in Mexico, and the results have largely been successful. In fact, the success was so remarkable that the study made headlines in Mexico, thus piquing the interest of local doctors. (Source: “Medical Marijuana, Inc.’s CBD Oil RSHO-X Garners National News Coverage Across Mexico After News of Country’s Medical Cannabis Legalization,” PR Newswire, May 12, 2017.)
HempMeds Mexico is only one of the company’s eight subsidiaries. Medical Marijuana, Inc in fact, manages its local and international presence through these subsidiaries. The company primarily distributes its products within the U.S. through its HempMeds subsidiary, provides support to local clinics through its Wellness Managed Services subsidiary, and sells products through its multi-level marketing subsidiary Kannaway.
As of its latest quarter in 2017, the company reports to have made roughly $3.0 million in sales, which is not too shabby, considering that the company is still warming up in this young industry. (Source: “Information and Disclosure Statement: Period Ending March 31, 2017,” Medical Marijuana Inc, last accessed May 26, 2017.)
As for MJNA stock, it has already delivered impressive returns in just one year. The stock has more than doubled in this period and has maintained its momentum, despite facing some speed bumps through the end of 2016.
At roughly $0.11, the stock is extremely cheap, making it an attractive growth play. I won’t shy away from calling it one of the top marijuana penny stocks in 2017.
Chart courtesy of StockCharts.com
Bottom Line on Medical Marijuana MJNA Stock
Marijuana stocks are on a tear for a good reason. The marijuana industry outlook seems very promising. But not all marijuana stocks are worth betting on. Marijuana penny stocks are particularly fraught with risk.
It’s true that Medical Marijuana Inc stock boasts the first-mover advantage in the industry, but keep in mind that the company is still in its infancy. Plus, here’s a word of caution: MJNA stock still trades over-the-counter (OTC). OTC stocks are much less transparent than exchange-traded stocks. This makes Medical Marijuana stock a risky wager.
Nonetheless, I take MJNA stock as a top marijuana penny stock in 2017 for its high growth potential in the coming years.
So, if your risk appetite allows, MJNA stock looks ripe for a tasting. Bon appétit!