Tuesday, January 21, 2014
MJNA will the hype push it higher?
For those of you who haven't heard of MJNA, or medical marijuana incorporated, they are a company that makes hemp products such as hemp oil and cannabis gum among others. They also "evaluate and purchase value-added companies and products" as it states on their website. Right now MJNA is trading at a dismal 0.19 but it does seem to be heading upward, most likely due to all of the hype with Colorado legalizing recreational marijuana. Even though that's not really what the company is involved in. Is it a buy or sell? I picked up some shares anticipating the hype of legalization pushing the price higher. After evaluating the charts and reading a little more about the company I think we will see a rise in value. Be cautious though, I look for this one to be a bumpy ride that may not end up on top. Just to share with you what I am looking for in this investment, I purchased it at .19 and will probably set up a sell limit order at .29 or so depending on how it moves this week. That will result in close to a 50% profit if it pans out that way. I would advise against putting a large percentage of your portfolio in MJNA, but if you have a little extra cash and want to take a chance on it then go for it. My personal investment in this one is only a fraction of one percent of my portfolio just to give an idea. UPDATE: I wanted to post an update to this one. Today is January 27th and MJNA has jumped to 0.39 as of right now, original post was January 21st so it has doubled in less than a week. Given the recent jump and the magnitude of the jump in price, I have decided to hold onto it for a while and see how high it will go. In my particular case, I have put a stop-loss order in at .29 since that was my original goal. If the price continues to rise I will gradually increase my stop-loss price trailing .08 to .10 of the current price. The way it is looking MJNA may very likely continue to increase in price so it may not be too late to buy into it. But again be aware that this is a very volatile stock so expect sharp jumps and dips.