The cannabis market has a mind of its own. On December 20th, Medical Marijuana Inc (OTC:MJNA) announced that one of its subsidiaries launched its latest CBC product for animals. For many, this is an innovative accomplishment. On the stock market, however, things are looking a little different for the MJNA stock, though this is a pattern we have seen in 2018. This year, MJNA stock has been down more than 50%.
Twenty-four hours after the initial announcement, the weed stock is down nearly 10%.
MJNA Stock: December 21st, 2018
According to Yahoo Finance, as of 12:24 PM, MJNA stock is trading at $0.081 (making it a cannabis penny stock), putting the stock down 10%. At the time of writing, the stock has been fluctuating between being down around 9% and 10%.
But here's the thing. MJNA stock has had a rough year, plunging to one-year lows in recent weeks; but the Poway, California-based company is making significant moves. From a 116% Y-O-Y revenue increase in the third quarter, obtaining permits that allow it to attempt cannabis operations in Mexico to yesterday's announcement, it's difficult to argue MJNA isn't doing anything.
The subsidiary selling the CBD pet products is Phyto Animal Health. The important takeaway about it is that this opens up a niche for the company. The first is animal hospitals; the second is veterinary clinicians. As the cannabis boom continues, it's critical for companies to develop a competitive edge, which is what MJNA is doing by targeting these two health sectors.
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Speaking on the latest product, Phyto Animal Health CEO Ian Quinn said the team "couldn't be more excited for it to launch," and that they hope it will help clinicians and animal hospitals "learn about the many potential benefits of CBD."
The new product is called Phyto Animal Health Vitality 3G Oral Concentrate. It is an all-natural supplement for pets, containing decarboxylated CBD.
The Takeaway
What do you think about the MJNA stock trading down, despite the positive news? Are you still wary of the company?
Featured Image: Depositphotos © watman
