This isn't information that he pulled off of IHub. It's information that you can get by reading MJNA's 2012 Annual Report, looking at FCLS's information on Yahoo Finance, and reading the FCLS's past financial documents.
I'm already overseas, and $33,000 will last me for about two years over here, so I'm happy about that. At the same time, though, it makes not having sold when it was 45 cents all the more hard to take.
Unfortunately, I'm with Ameritrade, so I can't buy back in, and I'm currently overseas, so it's hard to switch brokers. Over the last month or so, I would have tried to sell after each peak and then buy back back in at lower prices. Unfortunately, Ameritrade wants to keep its customers poor.
The company seems to be doing some legitimate things, and there's definitely plenty of room to grow in the industry if the legal status of MJ continues to evolve in the right direction, but right now it looks like the company is either selling its shares to generate revenue or simply "faking revenue" by having Cannavest give them shares that are not really worth the indicated amount.
I sold around 220,000 shares at an average of about 30 cents, and I'm not happy to have to do so. I don't know with absolute certainty that MJNA is doing something sneaky to inflate its 2013 revenue, but it kind of looks like it to me. I looked up Cannavest on Yahoo Finance and looked at some of its reports. It doesn't seem to have any money. It has shares which are not trading and which seem to have been "fixed" at $5.00 with some recent, small trades. So, I don't think Cannavest can pay MJNA its $35 million in cash, and I think any shares they offer as payment are not really worth anything. Maybe new information that comes out later will prove this view wrong, but at this moment I don't have any such information and the price is dropping. I wish I had looked at FCLS's financial information when MJNA was still over 40 cents.
Honestly, at this point, I don't know. I looked at the company (FCLS) that is supposed to pay MJNA the $35 million. According to Yahoo Finance, the company has no money to pay them. They only have their stock, which isn't currently trading (except for some recently "set" sales at $5.00). The company's CEO was granted a large number of MJNA shares. I suppose he could sell the MJNA shares to make some of the payments, but that would mean MJNA is essentially selling its own shares through another company in order to boost their revenue. If anyone has looked at FCLS's financial information and understands this better, please explain what is going on here.
Has anyone looked through MJNA's 2012 annual report yet? It's available on the OTC website now. It makes some headway in clarifying the financial transaction and business relationship questions raised in the Seeking Alpha articles. Everyone should study it carefully.
What's really annoying is that around the time the market opened today, I tried to post three comments underneath the article asking people to consider timing of the article (last trading day before the shareholder update), the position of the author (short), and so on. None of my comments were appeared. A few minutes ago, I received an email informing me of the reason. My comments were rejected because they contained "unsubstantiated allegations against the article's author."
If anyone wants to dispute the accuracy of any part of the article, Seeking Alpha has a "dispute article" form that can be submitted. The form requires you to list the factual errors in the article and the sources for the verification of those errors.
They said they'd be made on Feb. 17th.
If they were made immediately after the close on a Friday, that would probably mean bad news.
Everyone can also look her up and see her real picture on LinkedIn. She's listed as a legal executive in San Diego. The picture on LinkedIn appears to be of a different person from the one in the picture from Seeking Alpha.
Wow. This article really goes all out in its attacks.
You can easily infer the purpose of the article when it's released on the last trading day before the company issues its financial projections for 2013 and 2014.
In the Jan. 22nd pre-release of the 2012 4th-quarter report, they said the audited 2012 4th-quarter report would come out on Feb. 15th or before. It came out before the 15th (on the 8th). The shareholder update is scheduled for Feb. 17th. The Feb. 17th shareholder update will include the company's financial projections for 2013 and 2014.