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Watch This Penny Stock As Mexico Approves Medical Marijuana

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The Mexico Lower House of Congress just passed legislation on April 28 to legalize medical marijuana in the country. Now the President, Enrique Pena Nieto, must sign the bill into law to legalize cannabis for medical and scientific uses in the country. The bill passed 371-11.

The ruling “eliminates the prohibition and criminalization of acts related to the medicinal use of marijuana and its scientific research, and those relating to the production and distribution of the plant for these purposes.”

Medical Marijuana

One company sure to benefit from such legislation, Medical Marijuana Inc (OTCMKTS:MJNA), has not seen its share price increase since Congress’s’ approval.

This is significant considering the company is best positioned of any to take advantage of changes to Mexico’s medical marijuana laws. A Medical Marijuana Inc product, a CBD oil called RSHO-X, represents the only cannabis product that can be imported into Mexico.

The company’s subsidiary, Hemp Meds, has pioneered this market. Hemp Meds has a long history. Philosopher, entrepreneur and soap maker, Emmanuel Bronner, founded Dr. Bronner’s soap company outside of San Diego, California.

The company has been subject of many published articles and is celebrated throughout southern California and the U.S. for its moral philosophy and fair trade ingredients. It has since expanded into a multinational, multimillion dollar operation thanks to Dr. Bronner’s heirs. The heirs eventually founded Hemp Meds. It is the division of Medical Marijuana Inc. that has led the charge into Mexico with hemp-derived products.

Medical Marijuana, Inc., first exported to Mexico to help families gain access to THC-free CBD hemp oil Real Scientific Hemp Oil™ (RSHO-X™), after the Health Department of Mexico, COFEPRIS, issued the country’s first-ever government permits on February 2, 2016.

RSHO-X, studied clinically for a tough to cure epilepsy called Lennox-Gastaut, improved the condition of many of its patients. 84% of 39 patients, who took up to 5-7mg CBD/kg progressive doses of RSHO-X™ 5000MG, experienced a reduction in motor seizures; 53% reported better than a 75% reduction in seizures; and 7 reported a complete elimination of all seizures over a 4-month period, with zero reported side effects.The only other comparable product might be GW Pharmaceuticals PLC-ADR (NASDAQ:GWPH).

In January of this year, Medical Marijuana released information regarding expansion of its Mexico operations. HempMeds Mexico had received permission from Mexico’s health authority to import its flagship product Real Scientific Hemp Oil-X in January for a 44-year old woman with Stage 5 breast cancer. At that time, Medical Marijuana was trading for approximately $0.12 per share.

MJNA has been an investor’s favorite as an original marijuana stock on over the counter markets. Thanks to Hemp Meds, it enjoys a major inroad into the Mexico medical marijuana market. Hemp Meds offices are just north of the world’s busiest border between San Diego and Tijuana.

Medical Marijuana

Medical Marijuana, Inc. All-Time Chart

The last increase for MJNA took place alongside increases across the sector in the run-up to November’s 2016 U.S. Presidential election. Shares hit just over 25 cents in November before correcting. It’s all-time high is nearly $2.00 shortly after its initial listing.

Medical Marijuana’s overall market valuation currently is $296 million. It is known to suffer from debts that cause dilution. Despite this, the company is a leader in the space thanks to its history, big money and inroads into foreign markets.

“We applaud Mexico lawmakers for taking this significant step to reform cannabis laws to benefit their citizens,” said CEO of Medical Marijuana, Inc. Dr. Stuart Titus. “We are extremely proud to have been the first company to provide Mexico citizens with legal access to a medical product based on cannabis (THC-free hemp CBD). We believe the successful implementation of our product within Mexico, plus the overwhelming success of our clinical studies have helped to change the dialogue within the country regarding the safety and therapeutic potential of all forms of cannabis.”

Dr. Titus continued: “Given the Mexican Congress’ decision today, we are looking forward to the opportunity to assist an increasing number of citizens that suffer from unsuccessfully treated, debilitating medical conditions. Furthermore, we commend Mexican President Enrique Pena Nieto’s initiative to reform Mexico’s General Health Law and the country’s Federal Penal Code to continue relaxing laws against the medicinal use of cannabis. With the Mexico Congress’ decision today, families will experience fewer roadblocks when it comes to gaining access within the country.”

Medical Marijuana, Inc.’s 2016 revenue increased quarter over quarter by 66% from Q1 to Q4. Net Comprehensive Income increased to $171,387,975 – 731% higher than 2015. The company’s net revenue was $8,003,943 in 2016.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 1 rated postsJustin O'Connell is the founder of financial technology focused CryptographicAsset.com. Justin organized the launch of the largest Bitcoin ATM hardware and software provider in the world at the historical Hotel del Coronado in southern California. His works appear in the U.S.'s third largest weekly, the San Diego Reader, VICE and elsewhere.




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3 Comments

3 Comments

  1. Crytokings

    May 9, 2017 at 7:23 pm

    Justin, can you suggest the best way to get started investing in these type of stocks. Through a brokerage with low trading fees?
    Kind Regards, Bob

  2. Justin OConnell

    May 13, 2017 at 10:56 pm

    Hello Crytokings. There are numerous brokerage houses available in the U.S. each offering something different. The best way is to shop around trusted brokerages and find which accounts work best for your personal situation, depending oftentimes on how much you’d like to invest.

    • jolly648

      May 25, 2017 at 4:56 am

      Hello Justin, As you talked about a Marijuana stock what do you think of Aphira Inc and is it a good long term investment?

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Analysis

Crypto Update: Coins Edge Lower in Quiet Trading

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The cryptocurrency segment continued to trade without momentum in the past 24 hours, as although some of the small-cap coins experienced heavy trading the top currencies are virtually unchanged. The technical setup is also little changed, with only Stellar getting closer making progress since the Monday market-wide spike. Ripple, which was also among the more active coins couldn’t maintain its momentum, while Bitcoin and Ethereum got stuck in very narrow short-term ranges.


BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to trade between the $6275 and $6500 levels, as another very narrow trading range developed following the Tether-indices surge. The most valuable coin is still well below the previously dominant broad triangle pattern after last week’s breakdown, and the short-term sell signal remains in place in our trend model.

While the long-term setup is neutral, traders should still not enter positions here, with further resistance levels ahead at $6750 near $7000, and with support levels also found near $6000, $5850, and between $5000 and $5100.

Stellar/USDT, 4-Hour Chart Analysis

Stellar drifted above the key support zone that surrounds the $0.24 price level which also marked the top of the Monday rally. Should the coin hold above that level, a new short-term uptrend would be established even as the broader declining trendline is just ahead, and traders could enter small positions in anticipation of a break-out. That said, given the bearish segment-wide pressures, these setups are still to be treated cautiously, as no leadership has been established.

Top Coins in Deadlock as Long-Term Setup Still Bearish

XRP/USD, 4-Hour Chart Analysis

Ripple is still holding on above the key $0.42-$0.46 zone, but it still failed to show meaningful follow-through after the move out of the triangle consolidation pattern, and a new short-term uptrend is still not confirmed, so traders should still not enter positions here.  XRP faces strong resistance levels near $0.51, $0.54, and $0.57, while further support levels are found at $0.375 and near $0.35.

ETH/USD, 4-Hour Chart Analysis

Ethereum is trading in a similarly narrow trading range as Bitcoin, also on a short-term sell signal, with the focus being on the $200 support level. Ethereum’s long-term outlook is still clearly negative, with the broader declining trend being intact, and a move towards the bear market low remains likely in the coming weeks.

Traders and investors should stay away from the coin, despite Monday’ spike, as we expect the downtrend to resume soon. Strong resistance levels ahead at $235 and $260, while support is found at $180, $170, and $160.

LTC/USD, 4-Hour Chart Analysis

Litecoin also failed to make progress since Monday and a move below the $51 support level is very likely in the coming week. Below that support is found near $51 and the bear market low at $47, while the major zone of interest is near the $44 price level.

The weakness of LTC is a bearish sign for the whole segment, and traders should still not enter positions here, with strong resistance levels ahead near $56, $59, and $64.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 378 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

Hawkish Fed Lifts Yields, Dollar as Stock-Correction Continues

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US stock markets had a choppy and mixed session, and the major indices closed the day virtually unchanged, despite the early losses and the negative news flow. The US housing market disappointed again, the EU-Italy debate over the country’s budget continued, the US-Chinese relations further deteriorated, and the Fed also provided a negative catalyst towards the end of the day.

Dow 30 Index Futures, 4-Hour Chart Analysis

Investors were eagerly waiting for the meeting minute form the Fed’s latest meeting, but those expecting a dovish surprise were let down. The transcript contained more hints to tighter-than-expected monetary policies in the coming months and years, but still after an initial dip stocks rebounded to pre-announcement levels.

US 2-Year Treasury Yield, 4-Hour Chart Analysis

While especially shorter-dated yields rallied after the release, we would add that although there were voices that the Fed should exceed the “neutral” interest rate to cool the economy in the future, those voices will likely be muted by any major correction in financial markets or even a moderate slowdown in the economy.

Russell 2000, 4-Hour Chart Analysis

Stocks weathered the rise in yields so far, but after-hours, futures markets are drifting lower, and should yields resume their recent swift advance, another wave of selling could hit risk assets. With a lot of stocks and benchmarks still clearly in oversold territory concerning the short-term momentum indicators, the choppy correction could also continue, but we remain defensive towards global stocks, and we expect the risk-off period to continue in the coming weeks.

Dollar Extends Early Gains as WTI Crude Dips Below $70

Dollar Index (DXY), 4-Hour Chart Analysis

While the Dollar was already up in early trading against most of its major peers, it got a strong boost from the meeting minutes, with the Dollar Index climbing above the key support/resistance level near 95.50, establishing a swing low.

Barring a quick reversal, the Greenback headed for another important leg higher, and all eyes will be on the 1.15 level in the EUR/USD pair, as an extended move below that could open up the way for a strong momentum move in the USD. On a positive note, the most vulnerable emerging market currencies continue to perform well, in contrast with equities in the segment, and that could give some stability to risk-on currencies in the face of the broadly negative technicals

WTI Crude Oil, 4-Hour Chart Analysis

Commodities mostly finished the day with losses amid the rally in the Dollar, but while gold still only gave back a small part of its recent gains, oil plunged to a new almost one-month low, at least as measured by the WTI contract.

The Brent contract continues to outperform despite the easing of the US-Saudi tensions, but overall the risk-off shift in global markets is clearly hurting oil.  Copper is still stuck in a volatility compression pattern, but given the lengthy consolidation, a significant move is expected in the coming days by the industrial metal.

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 378 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Altcoins

Why Would Anyone Have Faith In Tether?

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I don’t want to get sued for slander so let me explain the reasoning beyond today’s title. After all of the turmoil surrounding Tether on Monday, how can the price be anywhere near the $1 parity level with the US dollar?  After more than a year, how can anyone have confidence in Tether and their common law partners Bitfinex when, for example, Circle, backed be the highly respected Wall Street giant Goldman Sachs offers an alternative?  We should also mention that Circle is just one of many so called stable coins.

It isn’t hard to find a list. Exchanges are feverishly adding stable coins. Singapore based Houbi is adding Paxos Standard Token (PAX), True USD (TUSD), Circle (USDC) and Gemini (GUSD).  

When Stable Coins Cause Instability

Well, the evidence is mounting as the months move along that so called stable coins can have the power of creating anything but stability.  This week’s experience with Tether, Bitfinex and the price explosion of Bitcoin demonstrates that there are still dangers lurking. This is why trust is important.

Monday’s gyrations were not the first questionable moment for Tether.  The coin, which gains its intended stability by being tied on a one for one basis with the US dollar, has been the subject of questionable behavior all year.  

As far back as January trade sources were expressing concern the Tether was responsible for last December’s major price bubble in Bitcoin.  The frenzy over Bitcoin set off speculation across the entire crypto spectrum. But that was just the beginning.

In June Bloomberg reported on a paper by John Griffin, a finance professor at the University of Texas, that among other things claimed 60% of last year’s price move in Bitcoin was the result of manipulation surrounding Bitfinex. That directly implicates Tether.

Using algorithms to analyze the blockchain data, Griffin’s team found that purchases with Tether were timed following market downturns and result in sizable increases in Bitcoin prices. Less than 1% of hours with such heavy Tether transactions are associated with 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies.

These findings prompted the US Commodity Futures Trading Commission to step in with a series of subpoenas.

Tether’s coins had become a popular substitute for dollars on cryptocurrency exchanges worldwide, and for good reason. They are anonymous, closely tied to the value of the US dollar and can be used in exchange for Bitcoin, Ether or about 10 other cryptocurrencies.  Tether is closely associated with Bitfinex, with whom they share common shareholders and management.

Bitfinex has offices in Hong Kong but it is legally headquartered in the British Virgin Islands. In May they announced plans to move to Zug, Switzerland. Bitfinex has a sorted history of poor security, having lost nearly $100 million worth of Bitcoin from customer accounts. Moreover, while claiming to have total one for one US dollar backing for each Tether, real proof is absent.  

Further Evidence of Manipulation

Over the course of this year, as we have gathered digitally to witness the loss of nearly $600 billion in crypto value, everyone has been looking for the culprit. When I first read of some of the academic studies that blamed the advent of futures trading on the CBOE, I laughed. Honestly, I believed the real cause of the rise and fall of crypto were a well connected group of billionaires that together had the power to move markets.  

Well the folks at Chainalysis have just produced some surprising research results. Their Blockchain Intelligence Platform powers investigation software for some of  the world’s top institutions. These guys don’t do surveys, the have their hands on big data that is able to detect some interesting stuff.

Chainalysis released a new report last week showing that the so called Bitcoin whales are not responsible for price volatility. The study examined the 32 largest BTC wallets, which reportedly represent 1 million BTC, or around $6.3 billion. That is a pretty solid sample size.

The data revealed that the BTC whales are do not act in concert with one another. In fact not only are they a diverse group but about two thirds behave like longer term investors. Instead of being FOMO (Fear Of Missing Out) types, on net they have traded against the heard buying on price weakness.

Putting The Pieces Together

The crypto world is bombarded with globally generated news on an hourly basis. But what does all of it mean anyway? Hopefully this article adds some perspective on what and who has been responsible for the direction of crypto prices over the past year.  As more of these weak players are identified and depleted of their business, real investors will have the confidence to return to the market.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 114 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




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