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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.

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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.

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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.

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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

Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs

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With the crypto world being focused on the historical futures launch, the major coins all enjoyed buying following a hectic weekend, and a volatile week as a whole. BTC itself got another boost from the widespread publicity and the volatile correction of the recent days ended, with the most valuable coin bouncing back towards its all-time high.

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While the long-term picture remains severely overbought, the short-term picture is not stretched and further gains are possible even amid the elevated correction risk. That said, investors should wait for a more favorable entry point to ad dot their holdings, while traders should control position sizes in the light of the long-term setup. Major support levels are now near $13,000, $11,300, and $10,000, with stronger levels still at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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The major altcoins are all up today, but only Monero and Litecoin are still within short-term uptrends, and the segment as a whole is still dangerously overextended, and a deeper correction is very likely in the coming weeks. LTC continued its recent break-out, getting close to the $200 level, and joining the extremely overbought group regarding the long-term momentum, and triggering a long-term sell signal in our trend model. Key support levels are found $100 at $75 and $64, with a weaker primary level at $125.

LTC/USD, 4-Hour Chart Analysis

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Analysis

Long-Term Analysis of the Silver Market

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Silver

The silver market has once again caught investors’ interest as the price is nearing areas not seen since late 2008.

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2017 started at a low point for silver, and it seems it will end the year that way as well, meaning investors who bought at the beginning of the year haven’t suffered nor gained much.

This doesn’t mean, however, that the price hasn’t moved during the year. After the low start of the year, silver quickly tacked on about 18% to a top of $17.50 per ounce.

In terms of fundamentals in the silver market, things look a bit complicated for 2018. There are multiple forces pulling in different directions for the price of silver going forward:

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Positives

  • A sharp stock market correction can be expected to occur some time in 2018. Most likely, this will happen sooner rather than later. Stock market crashes always trigger a flight to safety, meaning gold, silver, and quite possibly bitcoin, can benefit.
  • We are seeing signs that inflation may be starting to rise again, although this is not confirmed yet. Rising inflation is always good for precious metals.
  • If the US federal budget deficit widens as a result of the new tax reform, the US dollar may suffer as a consequence. Goldman Sachs put out a note to investors in November 2017 saying that the US debt is “on track” to reach an “unsustainable” level in coming years. Fed Chair Janet Yellen has also said about the US debt that it is “the type of thing that should keep people awake at night.” Rising debt levels creates uncertainty about the economy, which is generally good for gold and silver.

Negatives

  • Central banks around the world seem committed to raise interest rates in 2018. Rising interest rates are bad for precious metals because it would make it more attractive to put money in the bank.
  • The cryptocurrency bull market is on track to continue, diverting attention and capital away from precious metals as a traditional store of value. However, this one is uncertain, as it may also be considered a positive in the way that the rise of cryptocurrencies brings the inflationary and unsustainable nature of fiat currencies into focus.
  • The US dollar may have hit a bottom in 2017 and trade higher compared to other major fiat currencies going into 2018. A stronger dollar is always bad for precious metals, which are priced in dollars.

Silver chart

When looking at the chart, we can see that silver is back down to were it started the year, which coincides with a major support area where it has turned several times in the past few years.

From a technical perspective, silver has been trading in a triangle pattern on the longer-term weekly chart, with the price now trading very near the lower end of the triangle, adding confluence to our bias that silver will trade up from here.

Silver failed to live up to our prediction from early 2017, and is now even trading well below the level from that time.

A low price by any measure combined with two major technical support levels adds confidence to our trade and makes silver a low risk and potentially high reward trade for 2018.

Depending on your own strategy and investment style, you may want to wait for the price to break out from the current triangle pattern it has been trading in for the past year and a half. You would then give up some of the potential return for an even safer trade. After that, major resistance is found around $17.50 and $18, with lots of upside potential if we can finally break through those levels.

Featured image from Pixabay.

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Analysis

Long-Term Cryptocurrency Analysis: Look Out Below?

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After last week’s observation that a major top is in or near in the segment, the Bitcoin surge continued for almost a week, with Thursday’s wild session taking the coin as high as $19,000 (the article uses Bitstamp prices) on some exchanges. While the currency already pulled back by more than 20% the long-term picture is still extremely overbought and a much deeper correction is likely in the coming weeks.

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BTC spiked below $13,000 today, violating the primary weak support at $13,300, with further levels now at $11,300, $10,000 and $9000, but stronger support only found at $8200 and $7700. Next week’s futures launch could cause another jump in trading activity, and volatility is expected to remain very high amid the likely correction.

BTC/USD, Daily Chart Analysis

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While not all altcoins participated in the, supposedly, last part of the rally, IOTA, Monero, and towards the end of the week Litecoin, also stretched above all conventional targets with IOTA also turning exponential after a deal with Microsoft. The coin exploded by more than 350% before entering an initial sharp correction, breaking the steepest short-term uptrend. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other altcoins look after the crazy week.

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