What happes if we see the tobacco companies pushing for legislation which would clue us into the fact that they are positioning themselves also. They have the money, the marketing, the experience and the know how to step in and take over..So what becomes of MJNA then? opinions?
Sentiment: Strong Buy
Tobacco companies could only roll it and sell in packs like cigs. That does not work as well as a vaporizer. They could only sell packs of Rolled Gold to the masses. Which in itself would be highly profitable. Who knows....
I just got back from Colorado and all the local growers were complaining about Phillip Morris, they hate the news laws, etc. what you are worried about has already happened.
Its unlikely to happen. Tobacco is a "niche" market..one that tobacco companies took on their selves. Could tobacco companies sell cars, software, chickens, or #$%$ etc, also? Sure they could. But most of them focused on tobacco. Sure, big tobacco companies could do this, but this would not be without risk for them.
What works for tobacco, does not necessarily work for medical mj.
Very often, large companies can not move as quickly as smaller more nimble companies. One example of this is when Coke "changed" their formula, a few years ago. It was not well received.
Not JUST tobacco companies could try to compete with MJNA.. so could Big Pharma. Again, however, its a big risk for these big companies, and these companies are more likely to let MJNA take all the risks, then buy the company out when it gets to $15 a share. If big pharma or big tobacco wanted to start selling medical mj, then they could have done so, but did not. Instead, MJNA has a big head start and knows way more about medical mj than either big tobacco or big pharma. Speed is often a big issue, and big companies often can not bring a product to market as quickly as, say, MJNA.
Great question. Big tobacco has the tools already in place to make a run at producing marijuana cigarettes on a very large scale. I think though this is a few years down the line (3-5)......another point, many pot smokers don't care for cigarettes and would have a huge problem smoking a product produced by such disgusting corporations. In the end big tobacco will win, Trip won't put up much of a fight but your everyday marijuana consumer just might. Eventually we will all be able to grow our own and this whole conversation, MJNA included, will be irrelevant. Strong Buy, for at least the next year or so.
Sentiment: Strong Buy
MJNA is way ahead of the curve, has established production of all gambits of the product and has an established brand name with huge brand awareness.
A buyout is good for shareholders of both companies. But I do not see that happening to MJNA.
Big Tobacco has to set up all of their processes (or buy smaller companies with the processes in place) and establish a market place... while MJNA merely has expansion left to do.
By the time Tobacco gets involved, MJNA will be way too far ahead.
The way that I see it is that every single time a state legalizes for medicinal purposes or straight out legalizes it all together; MJNA will see an increase in price per share. I have two ways of playing this stock... 1) I have a ton of shares that I got very cheap and if the pps increases like I think it is going to, then I sell a bit here and there and purchase companies like Altria that will give me a nice dividend as well as potentially take over MJNA. 2) I am going to hold on to my other shares in case they do end up staying a viable company in the future.
Any of the 'longs' on this board would be fooling themselves if they think that big tobacco isn't going to come into this and claim their territory. Too much money is to be made. It is my hopes that if MJNA isn't going to survive, then they could try to get bought out.
So long story short.
1) They could survive and make a run for it and ending being in this industry for a long time. I like the fact that they are spearheading just about everything in this industry and that people who run the shops are all familiar with their brands (dixie elixers). Typically, if you try a product and you like it.... you are going to stick with that product and you aren't going to try others. This could be the way that MJNA stays in business for long term.
2) They could fizzle up and die and not have the capital to compete with the big boys..
3) They could get bought out which would still be lucrative to shareholders.
This is a risk/reward stock and for me the reward outweighs the risk. Just my 2 cents.
To answer your question yarnave... Tripp said his goal from the start was to be bought out by coperate tobacco. They would have to pay a huge premium for mjna at whatever pps the bids come in, and they will someday, and tripp will sell! It would be a glorious day to be remembered if all goes as planned.
If MJNA truly is legit then they would be a heavy competitor against big tobacco. Farm land is a terrible way to grow high quality marijuana as indoor is the best. It also needs much less pesticides and the like, and also produces much better quality marijuana is much more difficult to grow than tobacco you must trim away the leaves often and takes quite a few "bud tenders". Also, the big guys often buy out the little guys causing huge price increases. The worry about bigger players is unwarranted, the real concern is MJNA pretending $35 MM worth of a junk stock is the same as $35 MM revenue..
Valid point about the indoor grow... They sure don't grow tabacco under lights! Plus they lack the branding. Idk about you, but I would not buy camel weed... I would bet on a buy out Forsure. Mjna will be the top dog in the industry.... The name of their products will be worth a mint