MJNA: Strongly Positioned Assets Point Toward Growth
For investors that are looking to gain exposure in the medical marijuana sector, it is important to find established companies capable of limiting risk in newer markets. This is one of the reasons why a company like Medical Marijuana, Inc. (MJNA) remains a sector standout. As the first-ever marijuana company to go public, MJNA has been on a tear since it began operations -- acquiring companies left and right in an effort to expand its presence and increase working relationships in the industry. Below is a in which MJNA owns a 50% or more stake:
What all of this shows is that MJNA owns just about every type of cannabis-related business there is. This also means the company is fully prepared to capitalize on the growth prospects seen in the that is emerging now.
Rising market caps
Medical Marijuana, Inc.'s most valuable asset can be found in a publically traded company called Axim Biotechnologies, Inc. (AXIM), where the company owns an approximate 45.5% equity stake. With today's closing price of $8.20, this makes MNJA’s stake in AXIM worth over $185 million.
What does this all mean for rising market caps? Axim Biotechnologies currently has a even though it shows only $1.5 million in total assets. MJNA currently has a market cap of $347 million, so this single equity stake is worth roughly 53% of Medical Marijuana, Inc.'s total market cap. This makes it clear that the value of MJNA is now highly dependent on the performance of AXIM, which is a stock that has already grown by more 3000% in the last year.
Keep in mind that the stock price of AXIM rose from around 25 cents per share to over $15 per share at its peak. These types of massive valuations spikes show what is already possible for those investing in well-positioned companies in the cannabis sector.
MJNA has the Funds to Wait for Legalization
When we are looking at all of the publicly-traded marijuana companies, there are strong arguments to suggest that MJNA is in the best financial position to wait for the mass legalization of marijuana that is likely to unfold over the next few years. It is a harsh market reality that many companies in emerging sectors lose money in the short to mid-term. But we can see that MJNA's stake in AXIM alone could provide funding another decade or more if they decided to sell the company.
Add to this the fact that policy legalization is quickly unfolding both across the US and around the world. As part of its portfolio, MJNA has its HempMeds Mexico subsidiary, which has already of the non-THC, CBD-based products marijuana market in the country. The nation of Mexico is and HempMeds has had the only legal product in the country for over a year. This will help HempMeds Mexico keep its significant market share as legalization continues, and positive stories have been seen in , as well.
Stock prices in MJNA stand to benefit from enhanced revenues in diversified markets once their performances have more of an opportunity to drive profitability in the company as a whole. This means that structured positioning in MJNA could quite feasibly become one of the best marijuana investments in history.
All combined, this is a strong argument that investments in marijuana stocks might not be as risky as some originally suggested, and valuations are still attractive for those looking to gain exposure in these growing industries.
