Yesterday Medical Marijuana, Inc. (PINK:MJNA
, MJNA message board
) continued its mad streak and closed another 40% up, topping the most heavily traded OTC stocks chart. 54 million MJNA shares changed hands and brought the stock price to a close of $0.428 in the process.
The stock ran about 250% up in a matter of three trading sessions. A move this significant and this sharp is great news for stockholders but may also be a bit of a cautionary sign. The rapid increase of MJNA's price over such a short period of time does not necessarily signal a bubble that can pop at any point, as other cannabis stocks are also grappling up the charts fast and there seems to be an air of serious investor interest in the industry. The stir was probably aided by recent news that Kentucky is trying to enter the hemp business, with legislators and Kentucky's chamber of commerce supporting the motion for legal production.
Still, the very short time span of MJNA's climb may be followed by a pullback that may surprise new arrivals hoping for a climb that is sustained even further. There is obviously no way to know for sure what will happen within a few days and if there's something to watch out for with MJNA it's not so much based on technical analysis but on common sense.
Even considering MJNA's solid expected results for Q4, including upwards of $3.3 million in income and revenue exceeding $5 million, as well as their commendable plans for an extensive audit and possible uplisting, there have been no immediate major news releases to catalyze the surge. MJNA also remains a pink-sheet penny stock, even if it's one that generally shows better performance compared to its industry peers, and penny stocks are volatile - a concept implying movement in both directions.
Other pot stocks are also seeing heavy trading action, with Cannabis Science, Inc. (PINK:CBIS) and Hemp, Inc. (PINK:HEMP) trailing MJNA, respectively closing 34% and 80% up yesterday. Despite the movement, both stocks remained under $.10 per share and a far cry from the overnight mastodon MJNA has become with its current market cap of over $315 million.
More cautious traders will probably wait for things to simmer down a little before they make a move, while the bolder may want to take a stab right now, hoping for a prolonged run. New arrivals and MJNA longs alike will be hoping the stock's climb didn't put it in a position where it will go into a swoon.