First off - Congrats on being involved with this stock, as we are poised to make a life changing amount of money.
I'd like to give my general analysis on the future of this company moving forward. Feel free to voice an opinion or disagree on any point.
Let's start with the revenue. MJNA had 1100% revenue growth Y/Y for this past quarter- a staggering amount for a company in an industry where virtually no competitors are making a material profit. This is driven by several different revenue streams via their oils, gums, etc. To add to this, they plan to expand to 27 different countries in Europe as early as May 2013 which will only increase their revenue generating ability exponentially. The Marihuana industry is a worldwide industry. By moving their operations abroad, they open themselves up to a quickly developing world around us. With emerging and developing nations progressing the way they are, the revenue and brand opportunities are innumerable.
Regarding the audit, which bolstered my confidence in this company immensely, there are positives and negatives. It was obviously beneficial of MJNA to have their financials audited to show transparency and solid bookkeeping. However, by not going with a big 4 firm or even a largely reputable 2nd tier, they left themselves open to criticism and doubt. Still, the audit seems legitimate and is being reported on various sites so I am LONG and STRONG.
The political spectrum is every changing. Attitudes, preferences, and ideologies change. And so do laws. And we are in a period of stark reversal in public opinion on this issue, both in the public, and in Congress. Bills are being rolled out in states all across the country in efforts to legalize weed, or to at least, offer the right to choose to the states. Once with the states, the money would start rolling in (For them, and for us) -- Huge increases in revenue, tax revenue (Bills reporting a 50% tax on the retailer), and job creation will only add to the appeal for the states. The closely tied hemp industry which will only facilitate MJ stocks is also meeting much less resistance, as the recent KY legalization points to. The questions isn't a matter of if, but rather a matter of when. I for one, have a 40 year time horizon and am in no rush to day trade or sell my shares in this company. I will hold until I am good and ready to make an enormous amount of money that will allow me to do whatever I want with the rest of my life. This could be legal in a year, 2, 5, 10, 15, or 20 years (I am betting on the first half of those) -The point remains that whenever it happens to be legalized, this industry is primed to explode. Unlike many other infant industries, MJNA is immune to a problem that they all face. When an industry is created, it takes a significant amount of time to get a user base, and then in turn, monetize that user base. MJNA will have no such problem due to the fact that Marihuana is already a fully developed and flourishing industry -- a black market industry -- a black market industry that when legitimized will explode, and explode fast.
There will always be health critics when it comes to Marihuana -- however almost all of their claims are ill founded or just wrong. There is nothing inherently wrong with THC -- compared to alcohol or tobacco, MJ is the healthiest option. There is also a vast number of alternatives to smoking. You can avoid the carcinogens (the only negative affect of smoking weed) by eating or vaporizing the THC. MJNA is already capitalizing on these markets with their gum and Dixie products. Alcohol and Tobacco are physically addictive substances while MJ is not. While Tobacco costs more than MJ to produce, it is sold at 30$ a lb. whereas MJ is sold ranging from 1-5k per lb. The margins will decrease slightly when weed is legalized because the supply will eventually flood the market, however because of being WILLING AND ABLE ("Demand" for all you other Economists) to pay a premium price, they will. All that gives them great margins. GREAT MARGINS + NO DEBT (85k) + EXPONENTIALLY INCREASING REVENUE + HUGE MARKET = $$$$$$
Bashers may point to a potential Federal crackdown on the states passing pro-MJ laws, however Obama has publicly stated that he thinks doing that would be a "waste of time and money" -- which obviously, it would. There will be no Federal crackdown. This is on the upswing and it is only a matter of time before each state has legalized measures for marihuana. As the leader in this industry and nothing in their way moving forward, I see no reason why this stock can't reach a 25$ or higher valuation by 2018 (assuming legalization measures continue at this pace).
Good luck to all the other LONGs out there, glad we have all spotted this gem.
Sentiment: Strong Buy
The feds want it grow before regulation. If they regulate it right now they will downsize their revenues. MJNA is in a good position. They comply with the state laws, the supply chain is established and have a real product line. They may get bought in the future by a larger company that wants to capitalize on the industry. Either way the stock will rise higher and higher. Get in and stay in. I feel this will be huge.
Still, anything could happen....even the odd and that is the risk side.
I feel, Sunday's announcement will be good news on the financial direction of the company. I can't imagine they'd down talk the huge recent gains made in the industry. I see them doing all their actions to grow their business and influence other states to jump on the train. More states = more revenue.
You forgot to add that Liberal's Holder, Obama and all Blue state politicians will lead the charge to legalize or at least decriminalize. It is their constituency whom is most affected by the current laws. Think Vote's Folks and how they bought them last election.
Obama public ally saying he was not chasing this has opened the flood gates for state legalization, for expanded markets, for ever increasing tax revenue, what are mjna expansion plans for production? What are there current capacities?