What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?

Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.

Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.

Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.

Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.

About Medical Marijuana stock

Medical Marijuana stock is an American hemp/cannabis company with a global footprint. Operating through subsidiaries, MJNA develops and sells cannabidiol (CBD) products around the world and is a leader in this space with several brands to its credit. MJNA has also invested in and partnered with several successful businesses to maximize its potential in the lucrative hemp and cannabis markets.

MJNA unit Kannaway enters more international markets

On January 28, MJNA announced the expansion of its Kannaway subsidiary into Russia, Kazakhstan, and Kyrgyzstan. The entry into these new markets sees Kannaway extend its international footprint and allows it to grow its share of the CBD products market. MJNA stock jumped 6.51% on the news of Kannaway’s expansion into Russia, Kazakhstan, and Kyrgyzstan.

Through Kannaway, MJNA serves the CBD nutraceuticals market, which is growing rapidly. In 2018, the global CBD nutraceuticals market generated $3.8 billion in revenue. The market is on track to $17.4 billion in 2026.

MJNA plans more international expansion in its pursuit of the lucrative CBD nutraceuticals market. In June 2019, Kannaway hired Peter Dale to helm its operations in Japan in readiness for expansion into the country. CBD products have been legal in Japan since 2016, and that has seen Japan become one of the top-2 CBD markets in Asia with annual sales of $800 million.

Medical Marijuana stock expands its Mexican business with a new office

MJNA has moved to expand its business in Mexico, a very promising hemp/marijuana market in Latin America. On January 14, MJNA subsidiary HempMeds Mexico opened an office in Mexican capital Mexico City, adding to the existing office in Monterrey. The opening of the Mexico City office sees MJNA extend its footprint in Mexico just as the country works to expand its marijuana market with the legalization of adult-use products.

The existing medical marijuana market in Mexico generated $47.3 million in revenue in 2018. Mexico’s marijuana market has the potential to grow to over $1.0 billion in 2024 with the legalization of adult-use products.

The new office that MJNA subsidiary HempMeds has opened in Mexico City will help with promoting access to CBD products.

MJNA investment company AXIM Biotechnologies to bolster its fortunes in $183 billion cancer treatment market

On January 9, MJNA announced that its investment company AXIM Biotechnologies, Inc. (OTCQB:AXIM) is in the process of acquiring Sapphire Biotech, a leading oncology research and development company. In January, AXIM Biotechnologies announced that Sapphire had acquired important patents ahead of their merger. The patents will be crucial to Sapphire’s work on the development of cancer treatment.

The global cancer treatment market was valued at $128 billion in 2018 and is on course to hit $182 billion in 2023.

Given its investment in AXIM Biotechnologies, Medical Marijuana stock stands to benefit if the Sapphire deal results in a successful cancer drug.

Bottom line

Medical Marijuana stock is poised for a major breakout. For investors looking for a smart cannabis play, Medical Marijuana stock offers significant upside.

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Disclosure: We have no position in Medical Marijuana stock and have not been compensated for this article.